The Study Of Effect Of Financial Literacy On Household Borrowing Behaviors

With the development of financial markets,financial products are becoming more diversified and complicated.When families participate in financial markets,they need to have higher ability and quality to make decisions that optimize household utility.Chinese household borrowing behavior is an aspect of household financial behavior.According to the theory of intertemporal choice,household can smooth consumption in different periods through borrowing behavior,thus achieving optimal household utility.As an important human capital,financial literacy has been paid more and more attention by experts and scholars.According to information asymmetry theory and bounded rational decision theory,the differences in household financial literacy levels have different effects on household borrowing behavior.This paper divides the household borrowing behavior into three dimensions,namely,borrowing constraints,lending ways and borrowing purposes.It empirically examines the direction and extent of financial literacy on borrowing constraints,lending ways and borrowing purposes.The research content of this paper mainly includes the following aspects: The first chapter introduces the background and significance of the research on the effect of financial literacy on borrowing behavior.Through the literature review of existing research at home and abroad,the basic ideas and the frame of this paper will be determined,and then draw the technical route.The second chapter introduces the related theories of the effect of financial literacy on borrowing behavior,including information asymmetry theory,intertemporal choice theory and bounded rational decision theory.Based on these theories,the concepts of financial literacy and borrowing behavior are defined.The third chapter is mainly to explain the source of data,and analyze the statistical characteristics of individual and family variables,then construct financial literacy indicators through factor analysis,design the measurement indicators of lending behavior through questionnaires,and analyze statistical characteristics of financial literacy and borrowing behavior.The fourth chapter determines the dependent variable,the core variable and the control variable,firstly carries out the descriptive statistics of the variable;then further measures the distribution of financial literacy according to the individual characteristics;finally,empirically analyzes the effect of financial literacy on the borrowing constraint and the borrowing ways through the binary Logit model.Empirically analyzes the effect of financial literacy on borrowing purposes using a multi-valued Logit model,and then the results are analyzed and discussed.The fifth chapter draws relevant conclusions based on the results of empirical research,and proposes rationalization suggestions for the conclusions.This paper mainly draws the following conclusions:(1)As a whole,the financial literacy level of households is not high,and the financial literacy level among household is quite different.It is in an unbalanced state,and it is still necessary to increase the popularization and publicity activities of financial knowledge for household.(2)The average financial literacy of males in the sample is higher than the average level of female financial literacy.The financial literacy is inverted U-shaped on age.The higher the education level,the higher the average level of financial literacy.(3)More than half of the household in the sample are constrained in the process of borrowing behavior,indicating that there is a widespread problem of borrowing in households;and the number of household borrowing through informal ways far exceeds the number of households borrowed from formal ways;The use of household loans is diversified,but mainly used for housing loans.(4)Empirically analyze the effect of financial literacy on borrowing constraints,the results show that financial literacy has a certain mitigating effect on borrowing constraints.The borrowing constraints will be slowed down if the household with high financial literacy;the higher financial literacy The more household tend to borrow through formal ways;the effect of financial literacy on the use of housing loans is not significant,and the use of housing loans is mainly limited by objective conditions.