| Finance is the core of the modern economy,an important force to promote economic and social development,and an important core competitiveness of the country.Since the 18 th National Congress of the Communist Party of China,General Secretary Xi Jinping has attached great importance to financial work,delivered important speeches on financial development issues many times,and made important instructions for China’s financial development to achieve high-quality development and to embark on the path of financial development with Chinese characteristics.The limited participation of Chinese households in the financial market is one of the important factors restricting financial development,and the limited participation in the financial market also limits the wealth growth of citizen.The 20 th National Congress of the Communist Party of China pointed out that it is necessary to "increase the property income of urban and rural residents through multiple channels",and promoting residents’ participation in the financial market is one of the key ways to achieve this goal,which is also important for achieving common prosperity and promoting healthy social and economic development.Traditional financial theory is based on the important assumption that residents can freely,fully,and barrier-free participate in the financial services they need.However,financial exclusion exists widely around the world,and many people cannot participate in financial services in an appropriate and reasonable way.In addition,according to the classic life cycle and portfolio theory,all households should hold a portfolio containing risky assets and risk-free assets,and the investment proportion of each type of asset should depend on the difference in risk preference.However,the reality is different from theoretical expectations.A considerable number of households do not participate in risky financial markets,and even those households that do participate do not hold market portfolios.This is the mystery of "limited participation" in financial markets that has been widely discussed for a long time.Recent years have witnessed a fast-going literature on finance and economics that takes a cultural perspective.Culture is the spiritual home of a country or a nation,and embodies the value orientation,moral norms,ideological style and behavior characteristics of a country or a nation.Chinese civilization is the only civilization that has not been interrupted among the four ancient civilizations.The Chinese nation has produced and formed an excellent traditional culture through long-term production and living practices.On October 16,2022,General Secretary Xi Jinping made a report at the Twentieth National Congress of the Communist Party of China,pointing out that it is necessary to promote cultural confidence and self-improvement,and create new glories of socialist culture.In-depth excavation of the ideology,humanistic spirit,and moral norms contained in the excellent traditional Chinese culture,combined with the requirements of the times to inherit and innovate,let Chinese culture show the eternal charm and the style of the times.The influence of culture on economic and financial behavior has been increasingly valued by scholars,and the road to the development of Chinese financial characteristics is inseparable from the support and construction of culture.The excellent traditional Chinese culture has a long history,and how far-reaching it has had on household financial participation remains to be explored.Clan culture is one of the important representatives of Chinese traditional culture.The traditional basic social unit in China is the clan.The clan culture derived from it flourished rapidly in the folk since the Song Dynasty,and has endured through the changes of dynasties.It has become an important cultural and economic form.In recent years,the research on clan culture and financial participation has attracted more and more attention from scholars around the world.Previous studies have analyzed the mechanism of trust structure and social norms,and studied the impact of clan culture on financial participation in banking business,commercial insurance,etc.But there is no conclusion yet,and there is a lack of systematic analysis.Therefore,starting from theory and demonstration,this paper systematically studies and analyzes the impact of clan culture on Chinese household financial participation behavior from the perspective of the three pillars of China’s financial system,namely,banking,securities,and insurance markets.The heterogeneity analysis of the impact among different regions is conducted,the potential impact mechanism is discussed,and corresponding policy recommendations are put forward.Theoretically,based on the research of Guiso et al.(2008b),this paper analyzes the influence of clan culture on household participation in the stock market through mechanisms such as trust structure,financial literacy and education,and financial availability.Theoretical analysis shows that the limited trust of clan culture reduces the probability of participation in the stock market,but financial literacy,education,and financial availability mechanisms reduce the cost of investor participation and promote participation in the stock market.The specific impact of clan culture needs empirical results further analysis.This paper also introduces an informal risk sharing mechanism such as "Clan Mutual Assistance" into the classic commercial insurance demand model,and analyzes the impact of clan culture on the household commercial insurance demand.The theoretical model shows that the " Clan Mutual Assistance " behavior contained in clan culture crowds out household commercial insurance demand.Empirically,the third chapter uses the micro-data of the 2017 China Household Finance Survey to analyze the impact of clan culture on banking(savings,credit card)participation,which is different from previous studies that found that the limited trust of clan culture hinders financial participation.This paper finds that clan culture promotes the participation of banking business through the mechanism of education and financial literacy,and at the macro level,using the city/household deposit and loan data in the "China City Statistical Yearbook" to verify,it is found that the stronger the clan culture,the ratio of total deposits to GDP and the ratio of urban household deposits to GDP are both higher,which proves that clan culture has a positive impact on banking participation.In addition,this chapter also examines the impact of clan culture on corporate credit demand,and the results are not significant.Based on the analysis of the needs of residents and enterprises,this chapter further studies the impact of clan culture on banking development.Using the data on the establishment of bank branches of the China Banking and Insurance Regulatory Commission,it is found that the stronger the clan culture is,the more the number of bank branches is established,and the more branches increased from 1990 to 2018,and after controlling for fixed effects and quasi-natural experiments to exclude the impact of the supply side,it was proved that the role of clan culture in promoting banking development mainly comes from the promotion of household banking participation in the demand side.The fourth chapter still uses the 2017 China Household Finance Survey(CHFS)data to study the impact of clan culture on stock market participation,and empirically tests the mechanism.The research found that: 1.In areas where the clan culture is stronger,the tendency and depth of direct or indirect participation in the stock market,that is,the possibility of participating in the stock(stock and fund)market and the proportion of stock(stock and fund)assets in financial assets,are both significantly higher.2.The theoretical and empirical analysis finds that the influence mechanism of clan culture is financial literacy and education as well as financial availability.Clan culture promotes the improvement of residents’ financial literacy and education level.In addition,clan culture promotes the banking development and enhances residents’ financial availability.Both reduce the fixed cost of household participate in the stock market and promote the household stock market participation.3.The heterogeneity analysis shows that,from the perspective of urban-rural differences,the tendency and depth of rural households to participate in the stock market are significantly lower than those of urban households,but the marginal impact of clan culture on promoting rural households’ participation in the stock market is significantly higher than that of urban households.However,in samples that are less affected by clan culture,such as youth groups,highly educated groups,wealthier families,and families in western regions,the promotion effect of clan culture still exists.4.Finally,this paper combines theoretical models and previous literature,and also discusses the trust mechanism of clan culture.The study finds that the limited trust of clan culture does have a negative impact on stock market participation.In the form of participation that requires a higher level of trust(such as the professional agency investment model of funds),the promotion effect of clan culture may be restricted.But well-established formal institutions can mitigate the negative effects of limited trust.The fifth chapter still uses the micro data of the 2017 China Household Finance Survey(CHFS)to study the impact of clan culture on family commercial health insurance demand.The empirical results show that: 1.The stronger the clan culture,the lower the possibility of households buying commercial health insurance,and the lower the proportion of commercial health insurance expenditure in income.Clan culture weakens the family’s demand for commercial health insurance;2.Combined with the theoretical model and the empirical analysis show that the "two-way transfer payment" between relatives,that is,the behavior of "Clan Mutual Assistance" is the main influencing mechanism.In areas where the clan culture is stronger,the family has a greater probability of receiving transfer income from relatives or transferring expenditure to relatives,and the proportion of income and expenditure to family income is higher.Such an informal risk sharing mechanism crowds out formal commercial health insurance;3.The heterogeneity analysis of urban and rural households and other sub-samples found that the commercial health insurance demand of urban households is more likely to be crowded out by clan culture,regardless of the degree of wealth of the family,such a negative impact is significant;4.Finally,considering the differences in the positioning and functions of family commercial life insurance and family commercial health insurance,this paper further examines the impact of clan culture on the demand for commercial life insurance,and the results are not significant,which also shows that "Clan Mutual Assistance”mechanism.This thesis systematically analyzes the impact of clan culture on household banking business participation,stock market participation,and commercial insurance demand from the theoretical and empirical aspects,and further analyzes the impact of the growth of residents’ demand on banking development.Different from previous studies that believe that the limited trust and social norm mechanism of clan culture hinder banking business participation and banking development,this thesis innovatively proposes and verifies the financial literacy and education mechanism,and finds that clan culture promotes banking business participation,and by promoting the needs of residents promote the development of the regional banking industry.This paper also enriches the research on clan culture and stock market participation,and conducts an in-depth and systematic analysis of the potential positive and negative mechanisms of clan culture,and discusses the mutual influence of culture(informal institution)and formal institution.In addition,unlike previous studies that believed that there was a "crowd-in" effect between the behavior of "Clan Mutual Assistance" and the demand for household commercial health insurance,this thesis verified the "crowd out" effect of clan culture on the demand for household commercial health insurance through the behavior of "Clan Mutual Assistance",and its differential impact on family life insurance demand is compared and analyzed.The research in this thesis enriches research in the areas of household financial participation,financial development,financial literacy,and cultural finance. |
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