Research On The Impact Of Digital Finance On Household Risk Asset Participatio

In recent years,the emergence of digital technology has put a gas pedal on the financial industry,and digital finance has moved from the stage of building a foundation and pile to the stage of accumulation and development.The "14th Five-Year Plan" has clearly put forward the goal of "improving the level of financial technology,enhancing financial inclusion,and innovating more financial products that meet the needs of family wealth management",so that digital finance can continue to play its own advantages,stimulate economic vitality and help China’s economic High-quality development.Meanwhile,the Household Wealth Report for the fourth quarter of 2021 shows that China’s household wealth and income are steadily increasing,and the contribution of financial assets to household wealth is as high as 30%,and household assets are gradually changing from single savings to diversified allocation,and digital finance is increasingly linked to household investment activities.Therefore,it is important to study the impact of digital finance on household risky asset participation to enrich the content of household finance research,optimize household risky asset participation decisions,and promote the innovative development of financial institutions.In this paper,to be able to look into the influence of digital finance on the possibility of household risky asset participation and allocation ratio,30,405 households are selected as research objects after the treatment of missing values and outliers,and the research is conducted in conjunction with the digital inclusive finance development index compiled by the DFC of PKU.Firstly,based on the introduction of financial development theory,liquidity constraint theory and related concepts,the theoretical mechanism of digital finance affecting the participation possibility and allocation ratio of household risky assets is systematically elaborated;secondly,this paper uses the Probit model to explore the participation possibility of household risky assets and the Tobit model to explore the allocation ratio of household risky assets.Again,this paper constructs a mediating effect model to empirically test whether digital finance promotes the participation possibility of household risky assets by increasing financial accessibility and alleviating liquidity constraints.Finally,heterogeneity analysis is conducted based on regions and urban-rural areas,and the robustness of the regression results is ensured by using the instrumental variables approach and replacement models and variables.The empirical results show that(1)digital finance enhances the likelihood of household risky asset participation and increases the proportion of risky asset allocation.The breadth of digital financial coverage,the depth of digital financial usage,and the degree of digital financial support all significantly increase the likelihood of household risky asset participation and allocation ratio,with the most significant effects of breadth of coverage and depth of usage.(2)Digital finance can improve households’ attention to financial information,reduce households’ credit difficulties,and promote the participation possibility of households’ risky assets in two ways: improving financial accessibility and reducing liquidity constraints.(3)The role of digital finance varies across regions.By region,the eastern section is greater than the middle and western sections combined.By urban and rural areas,urban households and rural households are basically the same.Based on the above findings,the following recommendations are made: promote digital finance in the long run and systematically promote regulation;continuously strengthen technological innovation and enhance household financial literacy;implement credit service reform and improve personal credit system;strengthen digital finance inclusiveness and alleviate the development imbalance.