Research On The Influence Of Social Network On The Risk Financial Market Participation

According to data from the National Bureau of Statistics,the per capita disposable income of urban residents in China reached 42.26 million yuan in 2019,an increase of 5.2% compared with 2018.The per capita disposable income of rural residents reached 160.2 million yuan,compared with the actual 2018 Increase by 6.2%.As people’s per capita disposable income increases,more and more households begin to hold risky financial assets to increase income sources and enjoy the benefits of economic growth.According to the Family Finance Survey conducted by Southwestern University of Finance and Economics from 2013 to 2017,although household savings account for more than 50% of financial assets each year,their proportion is declining,and household risk financial market participation Both the rate and the investment amount of risky financial assets are constantly rising.The family as an important part of the micro-subject,its risk financial market investment participation is not only conducive to the rational allocation of financial assets by the family,but also helps to further develop and improve my country’s stock market,private lending market,fund market and other risk financial markets.There are many existing literatures on the influencing factors of family risk financial market participation,but most of them are based on individual characteristics and family characteristics,and ignore the influence of the social environment in which the family is located.Embedded theory believes that individuals are embedded in the social networks they own,and their economic behavior will be affected by the social networks.Therefore,from the perspective of the social network owned by the individual,this paper introduces the social network into the optimal theoretical model of stock investment through the uncertainty preference of the endogenous household head,and further deduces the theoretical mechanism of the social network influencing the decision-making of the residents’ stock market participation.The results show that,for residents with aversion to uncertainty,neutrality of uncertainty or hobbies of uncertainty,as the degree of social network of residents increases,the aversion to uncertainty or hobbies of uncertainty will decrease to varying degrees Or strengthened,residents are more inclined to participate in the stock market,and once they enter the stock market,the stock market participation degree is positively correlated with the degree of social networks,that is,as the degree of social networks increases,the degree of participation of residents in the stock market becomes more in-depth.The empirical part uses the data on the household financial survey released by Southwestern University of Finance and Economics in 2017,and the regression results based on the binary selection model and the merge regression model further confirm the above theoretical analysis.In addition,this article also studies the impact of social networks on household private lending market participation.First,through theoretical analysis,it is found that social networks can reduce residents’ perception of subjective risk and reduce the information asymmetry faced when lending,thereby reducing adverse selection and morality.Risk,increase the possibility of families participating in the private lending market and the amount of lending,the results based on empirical analysis further confirm the above conclusions.