Research On China’s Household Venture Capital Investment Decision From The Perspective Of Capital Endowment

In recent years,the disposable income of the household sector has jumped significantly,and financial products have become increasingly abundant,giving more households the ability and motivation to participate in the financial market and make more risky decisions.But at the same time,it should be noted that there are also many risks that are difficult to identify in the household financial market,such as mixed institutions and malicious default of credit,all of which challenge the decision-making ability of households.Based on this,this paper attempts to study the risk identification and risk decision-making ability of households in the financial market.The key to improving family risk decision-making ability can start from the improvement of family capital endowment,mainly including the enhancement of human capital and the improvement of economic capital.Human capital represented by financial literacy can provide an important human basis for families to improve decision-making efficiency,rationally allocate resources,and enhance risk decision-making ability.The economic capital represented by credit determines the feasibility of the family to make risky financial decisions,and constitutes an important guarantee for the family’s risk-taking ability.Therefore,this paper attempts to explore the financial decision-making ability of Chinese households from the perspective of household capital endowment.First,this paper studies the impact of financial literacy on family risk detection ability.This article selects the fraudulent behaviors that have received widespread attention in recent years as the starting point of the research,and explores how to use financial literacy to improve the family’s fraud detection ability.Using the 2015 China Household Finance Survey(CHFS)data,the empirical results domenstrate that the fraud detection ability of households improves with the level of financial literacy.In addition,this chapter further finds that financial literacy has a significant role in identifying frauds that are not face-to-face or non-acquaintances,while the effect of acquaintance fraud is not significant.Third,this paper finds five types of factiors that moderate the relationship between financial literacy and fraud detection,and concludes that participation in economic activity,the risk tolerance of household heads,and positive social interactions among households all positively contribute to fraud detection ability.Conversely,psychological factors,such as trust in strangers,and regional factors,such as income inequality,negatively impact households’ ability to identify fraud.Overall,financial literacy has a greater effect on groups with lower fraud detection skills.Finally,the paper explains this relationship from the information channel and asset allocation channel.Second,this paper explores the relationship between financial literacy and household entrepreneurial decision-making.The results show that financial literacy has a positive impact on households making entrepreneurial decisions and improving entrepreneurial enthusiasm.In addition,the article focuses on the effect of financial literacy on the entrepreneurial performance of families,and finds that the improvement of financial literacy can significantly increase the scale of family entrepreneurship and entrepreneurial income.Its influencing mechanisms include that financial literacy can improve the family’s ability to use funds,broaden the family’s marketing and payment channels,and improve the family’s innovation ability.Heterogeneity analysis shows that financial literacy is more likely to increase the participation of less-educated and less healthy households in the entrepreneurial market,but has no significant effect on their entrepreneurial returns.On the contrary,for families with higher education level and higher health,financial literacy has no significant impact on their entrepreneurial decision-making,but if such families start a business,financial literacy can significantly improve their entrepreneurial income.Third,this paper analyzes the impact of consumer credit availability on household financial investment decisions.Empirical research shows that the increase in the availability of regional consumer credit can increase the probability of households participating in the risky financial market,and can further increase the depth of household participation in the risky financial market.Second,the alleviation of household financing constraints by consumer credit is the core intermediary mechanism for this relationship to be established.Thirdly,the degree of influence of consumer credit on financial decision-making shows significant differences among different households.Consumer credit can improve the risk market participation probability of low-and middle-income families with higher risk aversion,lower financial literacy and higher background risk.However,the contribution to the depth of risk market participation of such households is weaker.In addition,the influence of consumer credit is affected by information asymmetry.When households pay more attention to economic and financial information and the households are located in urban areas with relatively developed finance,the effect of consumer credit is more significant.Finally,increased availability of consumer credit can further improve the effectiveness of household investment.