The Influence Of Social Network On Household Financial Asset Allocation

With the development of social economy,the enthusiasm of families to participate in the financial market is increasing.The research on household finance has gradually attracted the attention of domestic experts and scholars.Household finance is also established as an independent research direction similar to corporate finance and asset pricing,and is known as the three branches of modern finance.As an important participant and capital supplier in the financial market,the financial assets held by families play an important role in China's financial market.Therefore,the research on the allocation of family financial assets,especially the allocation of family risk financial assets,plays an important role in the rational allocation of assets and improving the quality of life of Chinese residents.In China's culture of more than 5000 years,attaching importance to human feelings and relationships has always been an important norm of interpersonal communication.Since ancient times,the "relationship" owned by Chinese residents,that is,social network,has played an increasingly important role in daily life,and also has a growing impact on the allocation of modern financial assets.At the same time,with the development of financial market,residents' financial literacy has become an important factor affecting residents' participation in the allocation of financial assets,and has gradually been paid more and more attention by domestic scholars.But on the whole,the number of domestic literature on the impact of social network and financial literacy on family financial asset allocation is not much.Therefore,further research on the impact of social network and financial literacy on the allocation of family financial assets in China is of great significance.This paper analyzes the impact of social network and financial literacy on the allocation of family risk financial assets.Based on the data of China Household Finance Survey(CHFS)in 2017,this paper first combs the relevant literature on the variables of concern and dependent variables,summarizes the previous research results,and summarizes the relevant theories and the theoretical mechanism of social network influencing the allocation of family risk financial assets.Then,empirical research is carried out,using probit,Oprobit and tobit models to study the influence of social network and financial literacy on the willingness,breadth and depth of family risk financial market participation.This paper adopts instrumental variable method to solve the endogenous problem,and uses the method of substitution variable to test the robustness,and analyzes the heterogeneity of its influence from the perspective of region and income.Finally,we test the mediating effect and conclude that financial literacy has partial mediating effect.The results show that:social network and financial literacy can promote the willingness,breadth and depth of family participation in risk financial assets,and in addition to social network and financial literacy,a variety of factors can affect residents' financial market participation and allocation of risk financial assets.