Research On The Impact Of Digital Literacy On Household Financial Market Participation And Consumption Behavior

In the digital age,people rely more and more on digital technology,and the role of personal digital literacy in household financial assets and consumption is becoming more and more obvious.Although consumption and investment have different mechanisms to promote economic development,they are mutually reinforcing,especially consumption can promote the development of production,employment and investment.On the one hand,consumption is an important driver of sustained growth in domestic demand,an indispensable link and a key engine for the smooth flow of the domestic cycle,while on the other hand,the current financial investment behavior of households is characterized by a single type and "limited participation".The analysis of household investment and consumption behavior is not much,and of practical significance for the healthy development of China’s capital market.Based on the information asymmetry theory,modern portfolio theory,consumption-related theory and behavioral finance theory,as well as the summary of existing studies,we use the survey data of CFPS(2018),select relevant indicators,and construct an evaluation framework of digital literacy of Chinese residents from four perspectives:digital basic kills,communication kills,online transaction skills and problem-solving skills,using factor analysis.The Probit and Oprobit models were selected to test the effects of digital literacy on household financial market participation and household consumption levels,respectively,among which household financial market participation mainly studied household risk financial asset allocation behavior and private lending behavior,and the Tobit model was selected to further examine the impact of digital literacy on the investment scale of household risk financial assets and the impact of digital literacy level on household consumption structure.The results show that the increase in digital literacy can promote the purchase of risky financial products,expand the scale of investment in risky products,and promote the increase of household consumption level and the optimization of consumption structure.This result holds after instrumental variables testing and replacing the core explanatory variables.The mediating effect of digital literacy on household risky financial asset allocation is tested by improving financial literacy,and digital literacy on household consumption by broadening social networks.In addition,household income level strengthens households’ willingness to make risky investments and consumption ability.Housing value plays a supportive role in the process of digital literacy influencing risky financial assets,and plays a negative role in the process of digital literacy influencing consumption levels.Further analysis of the heterogeneity of the impact of increased digital literacy on households’ financial market participation and consumption behavior reveals that the impact of digital literacy on middle-spending households is greater through quantile regression.The impact of digital literacy on rural households’ private lending behavior is greater than that of urban households,it has a greater impact on the consumption level of urban households,and the impact on household financial asset allocation is greater in the east regions family and high-income family.Based on the above findings,we propose to improve the digital literacy level of residents and break the "digital literacy gap" between urban and rural areas;expand the scale of higher education to promote financial literacy;continue to strengthen income regulation to narrow the income gap;and improve the operation system of the financial market and strict the information disclosure system of the financial market.