The Impact Of Internet Finance On Household Financial Asset Allocation

The report to the 20 th National Congress of the Communist Party of China pointed out that a people-centered approach should be adopted to increase the property income of urban and rural residents through multiple channels.One of the important aspects is that residents need to allocate household financial assets more reasonably and efficiently.In recent years,the rapid development of network and information technology has laid a solid foundation for the development of Internet finance.The rapid development of Internet finance has profoundly changed the investment choice and allocation of household financial assets.Internet finance brings many high quality financial products to meet the needs of differentiated and diversified investment of residents.Currently,the per capita disposable income of Chinese residents grows steadily and family wealth accumulates continuously.Internet finance plays a more and more important role in helping family wealth preservation and appreciation.Therefore,it is very important to explore the influence of Internet finance on family financial asset allocation and put forward reasonable suggestions based on the research results for the steady increase of family property income.Based on the data of China Household Finance Survey and Research Center in 2019,this paper reviews relevant literature and studies on the basis of information economics theory,life cycle theory,portfolio theory and behavioral finance theory,firstly proposes specific research mechanisms and hypotheses,and then selects variables to build a model.OLS and other models were used to empirically test the influence of Internet finance on household financial asset allocation.Secondly,financing constraints,degree of risk preference and attention to financial information are selected as mediating variables to test the hypothesis one by one through the mediation effect test.Then IV-2SLS model was used to check the endogeneity problem,and robustness test was conducted by replacing explanatory variables to ensure the reliability of the conclusion.Finally,the samples are divided into different household registration,different income levels,different education levels and different regions to explore the heterogeneity of the impact of Internet finance on household financial asset allocation.The results of this paper show that:(1)No matter which model is used,Internet finance has an obvious effect on household financial asset allocation,including increasing the types of financial assets allocated by households,increasing the proportion of household financial assets in total assets,and increasing the proportion of household risky financial assets in total financial assets.Moreover,the influence coefficient of risky financial assets in total financial assets is obviously greater than that of financial assets in total assets.(2)The results of the intermediation effect test show that the three intermediary variables all have significant intermediation effect,that is,Internet finance affects the household financial asset allocation by influencing the three intermediary variables respectively.(3)The heterogeneity test results show that the impact of Internet finance on financial asset allocation of households with urban household registration,high income,high education level and eastern households is significantly higher than that of other corresponding households.Finally,based on the current situation analysis and empirical results,this paper gives reasonable suggestions and countermeasures from the perspective of family,financial institution and government respectively.