Research On The Influence Of Household Financial Literacy On Stock Participation Behavior Of Residents

With the acceleration of China's financial reform,the continuous expansion and deepening of the financial sector's service sector and level,and the introduction of new financial products,financial services have become closely linked with the lives of ordinary residents.More and more financial products have entered China's residents.life.A wide variety of financial products have enriched the financial market on the one hand,but on the other,they have also placed higher demands on our residents.This poses a huge challenge to residents.According to the statistics from the China National Depository and Clearing Corporation,the number of individual investors in China in 2016 was 117.7642 million,an increase of 18.896 million over the previous year,an increase of 19.19%.(China Registration Calculation 2016).This shows that China's stock market has a large number of participants and its growth rate is very fast.At the same time,since the birth of financial literacy theory has become a powerful tool for the study of residents' behavior,and most of the residents' stock market participation in decision-making is made in the family,so in the context of increasing stock market participation,the study of household financial literacy The influence of residents' stock market participation behavior is particularly necessary.This article first systematically reviews the theory of family financial literacy and the behavior of residents' stock market participation,and clarifies the theoretical basis of the impact of household financial literacy on residents' stock market participation behaviors and the status quo of domestic household financial literacy and stock market participation behavior.On the basis of reading a large amount of literature,the relevant indicators for measuring the financial literacy of Chinese residents are summarized.Twenty-five related indicators were selected from the data of Tsinghua University's 2012 Household Finance Survey,of which 16 were financial literacy related indicators and 8 were residents.The household's own variables,one is the resident's stock market participation behavior indicator(ie,whether to participate in the stock market).First,descriptive statistics were used to analyze the 24 variables.Then factor analysis was used to reduce the dimension of the data.The 16 resident financial literacy related variables were converted into 6 common factors.Public factors and other variables were substituted into binary logistic multiple regression equations for empirical analysis.The empirical results show that only among the eight variables in the basic situation of households is whether any children have an impact on the participation of the residents' stock market in decision-making,and this effect is positively correlated,while age,gender,marriage,occupation,education,total household population,family health The conditions are not significant for the residents' stock market to participate in the decision;and the eight variables included in the household financial literacy are financial education-related factors,financial planning factors,financial supervision factors,family income and expenditure factors,stock market risk factors,interest rates and exchange rate factors.The participation behavior of the stock market has a positive effect,and these variables will significantly affect the residents' participation in the stock market.Moreover,in addition to financial planning factors that have a negative impact on residents' participation in the stock market,the other five factors have a positive impact on the participation of residents' stock markets.Investing in the stock market as an important way of maintaining value,it is vital for residents.Therefore,this article proposes that our residents strengthen the cultivation of financial literacy,and increase their financial resources by investing more time and money in financial education.Invigorating.Can use the network,field and other ways.At the same time,as the number of residents obtaining financial knowledge through banks is the lowest,as China's state-owned commercial banks,they should be more active and deeply involved in the promotion of financial knowledge in order to improve the financial literacy level of our residents.Because residents' understanding and understanding of financial supervision will significantly affect the participation of residents' stock markets in decision-making,and the number of residents who understand China's financial supervision policies is very small,and the financial supervision policies are controlled by the Central People's Bank,so the People's Bank of China should vigorously Promote and popularize China's financial supervision policy.We can vigorously promote China's financial regulatory policies on the Internet and on television.We can also organize various forms of financial knowledge into community activities to improve the financial literacy of our residents through these diverse methods.The level of residents' income and savings deducting expenditures will affect the participation of residents' stock markets in decision-making,and it will be a positive impact,and the survey population will also have a large monthly income of less than 5,000 yuan.Therefore,in order to make residents' stock market participation more rational,residents Efforts should be made to increase personal income.The government should also make great efforts to create more jobs and increase residents' income.We should regulate the stock market to a greater extent,increase supervision of financial markets,prevent bad companies from making money through listings,and strengthen the supervision of bad market makers and actions that are not conducive to the interests of small and medium-sized investors.The stock market is more standardized and transparent.Legalization.