Research On The Impact Of Internet Use On Household Financial Asset Allocation

With the rapid development of national economy,people’s living standards are gradually improved,disposable income is constantly increasing,and families are more and more willing to participate in the financial market to achieve stable growth of wealth.At the same time,the development of Internet technology has transformed traditional offline financial transactions into online transactions.Various Internet trading platforms and financial products have emerged constantly,injecting new vitality into the financial market.More and more families enter the financial market to participate in investment.Whether the integration of Internet and financial market can promote the allocation of household financial assets has become a problem studied by scholars in recent years.Starting from the perspective of Internet use,this paper empirically studies whether Internet use will have a significant impact on household financial asset allocation and through what means.This paper firstly summarizes and summarizes the relevant literature at home and abroad,and defines and combs the relevant concepts and theories.In this paper,the research hypothesis is presented based on the present situation of Internet use and the present situation of family financial asset allocation.Then,using the Chinese Household Finance Survey data(CHFS)released at the end of 2021,the Probit model is used to study the impact of Internet use on whether households participate in financial asset investment,and the Tobit model is used to study the impact of Internet use on the proportion of household financial asset allocation.Considering the possible endogeneity of Internet use in the empirical process,this paper selected appropriate instrumental variables,adopted IV-Probit model and IV-Tobit model for endogeneity test,and then conducted robustness test and heterogeneity test.The mediating effect of financial literacy on the influence of Internet use on household financial asset allocation was studied by constructing financial literacy index with factor analysis method.The results show that: first,Internet use promotes the participation of households in risky financial assets investment,and increases the proportion of households in financial assets.Secondly,the impact of Internet use on household financial asset allocation is heterogeneous.The promoting effect of Internet use on participation in risky financial markets in urban areas is greater than that in rural areas,and the promoting effect on participation in risky financial markets in eastern areas is greater than that in non-eastern areas.Third,Internet use helps to improve people’s financial literacy,thus promoting household financial asset investment.Finally,the paper summarizes and analyzes the empirical results.Relevant countermeasures and suggestions are given from the government,financial institutions and families: the government should further improve the popularization of Internet in rural areas,strengthen regional financial regulation and control and financial knowledge popularization;Financial institutions should enrich Internet financial products and improve Internet trading platforms;Family investors should enhance their financial literacy and establish correct financial management concepts.Through these suggestions,this paper hopes to promote household investment in financial assets and alleviate the problem of "limited participation" in financial markets.