The Research On The Impact Of Internet Finance Development On Stock Market Volatility

With the rapid advancement of technology,Internet finance has been developing rapidly which has brought great convenience to People's Daily life and work and has also caused a great impact on the stock market.During a stock market crash,predominantly fixed-income financial Internet investment business were popular,a part of the money in the stock market diverted to the Internet platform to purchase fixed-income financial products whose risk is relatively low in investment and financing,Internet finance shows a certain ability of "anti-stock disaster".Under this background,the research on the Internet finance what is the specific influence to the stock market and what is the way to influence the stock market is very important for us to research how to develop the Internet financial which reduces the stock market volatility.Based on the estimation method of static panel data model and dynamic panel model,we make the twenty-nine provinces and regions as sample and select the provinces in January 2014 to march 2016 whose relevant financial data of the stock market and Internet financial development index of Beijing Internet financial research center as sample data.On this basis,we study to examine the Internet financial impact on stock market volatility.The research conclusion shows that:(1)The development of the Internet finance has obvious effect on the fluctuation of the stock market,but the effect is small,this shows that Internet finance has not played a stabilizing role in the stock market.(2)Further research shows that different areas of Internet finance have different effects on stock market fluctuation.The development of Internet monetary fund area has an obvious small effect on the stock market to reduce the fluctuation of the stock market;The development of Investment and Financing area and the Internet insurance area have an obvious small effect on the stock market to increase the fluctuation of the stock market;Although the development of Internet payment area has also an obvious small effect on the stock market to increase the fluctuation of the stock market,this effect is not significant.(3)The consumer price index has an obvious effect on the stock market to increase the fluctuation of the stock market,and this effect is larger than that of Internet finance.Stock market value also has an obvious small effect on the stock market to increase the fluctuation of the stock market.(4)The Previous stage of stock market volatility has an obvious large effect on the current stock market to increase the fluctuation of the current stock market,and this effect is larger than that of others,this shows that the stock market volatility is greatly affected by the previous stock market.