Research On The Impact Of Internet Use On Investment And Financing Of Chinese Residents

Since the reform and opening up,China's economy has been developing at a sustained and high speed,and residents' income has been rising every year.At the same time,the investment and financing needs of families have not been fully met.The narrow investment and financing channels are still an important issue affecting the wealth management and asset allocation of Chinese residents.In the Internet era,the Internet provides a platform for everyone to obtain financial information,so that it is easier for people to know a variety of financial products and services.It cannot be denied that the Internet plays an important role in optimizing residents' investment portfolio and meeting financing needs of families.In order to further clarify how Internet works to exert influence on the investment and financing decisions,this paper is going to discuss the role of Internet from the perspective of household investment and financing respectively.In terms of household investment,portfolio theory holds that investors need to diversify their assets and follow the principle of diversification to manage investments,so as to reduce risks and increase profits.However,data show that Chinese residents are so conservative that the proportion of savings in their investment portfolio is too high,while the proportion of riskier assets including stocks,funds and other investments is very low compared with what is found in Europe,the United States and other developed countries.Therefore,based on the data of China's household financial survey in 2013,this paper sets the number of financial assets held by households as the dependent variable to explore the impact of Internet on it.In addition to the direct influence,based on the information transmission which is one typical feature of the Internet,financial knowledge acquisition is introduced as an intermediary variable to further study the influencing mechanism of Internet on household investment.As for household financing,the fact that China's financial sector is of a dual structure which means both formal financial institutions such as banks and informal private financial institutions exist.Due to credit rationing,a large number of families can only rely on private financial organizations to satisfy financing needs.This paper believes that the use of the Internet will have an impact on households' participation in both formal and informal financing channels.In order to clarify the influencing mechanism,this paper again selects financial knowledge acquisition as the variable and use the mediating effect model to do the research.Through studying existing domestic and foreign literatures and empirical studies,this paper comes to the following conclusions:first,in terms of household investment,the ues of Internet has a positive impact on the diversification of household asset investment;the influence can be a direct impact and can also be achieved through the acquisition of financial knowledge;In terms of household financing,the use of the Internet improves the availability of formal financing and reduces the availability of informal financing.At the same time,financial knowledge acquisition plays a partial intermediary role in this process:financial knowledge acquisition plays a positive role in formal lending.Based on the above results,this paper puts forward two suggestions:to begin with,relevant departments should continue to promote the popularization of the Internet,especially in rural areas.Further development and popularization of the Internet will facilitate the development of internet-based financial services and reduce costs.Secondly,financial institutions should actively take advantage of the knowledge dissemination function of the Internet,making use of the Internet platform to give appropriate guidance to household regarding investment and financing.There are mainly two points of innovation in this paper.First of all,this paper studies the household investment and financing comprehensively.At present,the researches on household investment and asset management are rather mature,while rare study is conducted on household financing.This paper studies the two problems at the same time and draws conclusions relatively.Secondly,in terms of research model construction,this paper considers the current technology environment and studies from the new perspective of the use of Internet.In addition,this paper introduces financial knowledge acquisition as the intermediary variable,and subsequently constructs a model of intermediary effect,which illustrates the influencing mechanism of the Internet on household investment and financing.On the basis of the empirical model constructed,this paper comes to the conclusion that the use of Internet not only has a direct effect,but also has an indirect effect on household investment and financing through the dissemination of financial knowledge.The limitation of this paper is that no moderator variable is introduced to investigate its influence on the correlation between variables in this paper.In addition,with no access to the new data,this paper uses the data of the 2013 China household financial survey,which may differ from the current situation.To sum up,this paper proposes that the household investment and financing are strongly affected by the tide of the Internet.Relevant institutions should use the Internet appropriately to provide information to the public and guide families to make reasonable investment and financing decisions.Only by using the Internet properly,can a sound financial ecosystem be developed.