The Influence Of Social Capital On The Allocation Of Family Financial Assets In China

As family finance and corporate finance,capital asset pricing and other relatively traditional fields of research have established a new research field,and it occupies a large proportion in China's financial assets which reflects China's economic development level.Especially under the circumstances of the new normal,studying family finance has an important role in promoting the welfare and economic development of our country's residents.With regard to the research on the influencing factors of the allocation of family financial assets,many scholars at home and abroad have studied from several aspects such as individual characteristics of the family,subjective factors of the residents,background risks and social factors,and have also drawn some important conclusions.In our traditional society,the idea of human touch is with a long history behind it,and more and more people also thought highly of the development of human relationships.The "relationship" owned by Chinese family residents-social capital,it plays a more and more important role in people's daily lifes,and it will have impact on the distribution of financial assets of modern households.So social capital,as an important influencing factor,has attracted the attention of domestic scholars,and the impact on the allocation of household financial assets should be further studied.However,some scholars are limited to rural households and rural residents in the study of social capital.They are more concerned with how social capital affects the financing capacity of rural households and how rural residents can participate in informal rural financial markets for private lending.By sorting out the relevant literature,we can find that there is not much research on the impact of social capital on the allocation of domestic financial assets in China.Therefore,this paper further analyzes the impact of social capital on the allocation of domestic financial assets in China.This article is based on the 2011 Chinese Household Financial Survey(CHFS)data from Southwestern University of Finance and Economics.By sorting out the relevant literature,and review relevant theory,the this paper empirically studies their influential mechanism on this basis and the relationship between social capital and the allocation of China's household financial assets.After incorporating some control variables,and use Probit model to study the impact of social capital on financial market participation rate,and then use Tobit model to study the impact of social capital on the depth of financial market participation.In addition,from the perspective of the difference between urban and rural areas and regions in China,I study the impact of social capital on the allocation of China's household financial assets.This article is also study their influential mechanism,social capital is through what channels to influence it,finally summarize the effects of several possible mechanism.The results of the study show that social capital not only promotes the probability that family members will actively participate in the financial market,but also increases the proportion of their holdings of risky financial assets,that is to say,social capital will promote their participation in the depth of financial markets.In the analysis of urban and rural areas and regional differences in social capital,compared to the urban regions,the social capital level of household residents has a more pronounced promoting effect on the proportion of household assets allocated to rural areas.however,the central and western regions is no significant difference.social capital is based on the source of information obtained by family residents,borrowing funds and transfer income,and analyzes the influential mechanism of social capital on the allocation of domestic financial assets in China.Finally,based on the results of this study,the corresponding countermeasures and suggestions are proposed.