Research On The Impact Of Digital Financial Capability On Rural Household Financial Asset Allocation

Over the past 20 years,China’s economy has developed rapidly from a backward and poor country to the world’s second largest economy.Not only has the national wealth been rapidly accumulated,but also the wealth of Chinese residents has been accumulated.Households have an increasingly high demand for diversification of investment portfolio and asset allocation,and rural households are no exception.The China Household Finance Survey report shows that the participation rate of rural households in risky financial assets was 1.12 percent in 2013,2.4 percent in 2015 and 3.07 percent in 2017,and the participation rate of rural households in risky financial assets increased year by year.However,the inequality between regions caused by rapid economic development and the serious financial exclusion in rural areas have led to the low participation rate of rural households in financial allocation and the single mode of financial asset allocation.For rural residents,how to make a reasonable investment portfolio and optimize the mode of financial asset allocation can not only solve the "limited participation problem" in rural areas.We can also increase farmers’ property income through various channels to achieve rural revitalization and common prosperity.With the advent of the digital age,its inclusion has been widely concerned and supported by the state.Digital finance breaks the time-space constraint of traditional finance due to its natural technological advantages,and brings digital opportunities for the financial development in rural areas.However,the inclusion of digital finance still depends on the active participation of the demand side.The inequality brought by the development of digital finance makes rural residents more susceptible to the impact.Therefore,how to improve the digital financial ability of rural families and mitigate the impact of digital divide on residents has become a topic worthy of attention.Based on this background,this paper studies the influence of digital financial capability on rural family financial asset allocation,and explores the influence path of digital financial capability-financial exclusion-rural family financial asset allocation.First of all,this paper reviews the current research situation at home and abroad,summarizes the existing research ideas and frameworks,and puts forward the research framework of this paper.Then,it summarizes the financial intermediation theory,portfolio theory,risk attitude theory and behavioral finance theory.Based on these theories,it makes a theoretical analysis of the main research content of this paper and puts forward the research hypothesis of this paper.Secondly,it collects and collates relevant research reports,and uses qualitative and quantitative analysis methods to analyze the current situation of digital finance,rural financial exclusion and household asset allocation in this paper.Finally,this paper uses the survey data of Chinese household finance(CHFS),constructs the digital financial capability index from the micro level,adopts panel Probit model and panel Tobit model to empirically study the influence of digital financial capability on rural household financial investment behavior and its mechanism.Moreover,it further studies the difference of the influence of digital financial capability on the ratio of rural household financial assets in the characteristics of household head,family and regional characteristics.The results show that,first,digital financial capability has a significant positive impact on the participation of rural households in risky financial assets and the proportion of risky financial assets,and digital financial capability has an investment promotion effect;Second,digital financial capability can improve the participation rate and allocation ratio of risky financial assets of rural households by alleviating the financial exclusion at the demand side.Third,digital financial capability plays a more significant role in increasing the proportion of risky financial assets of vulnerable groups and backward rural families,and digital financial capability has a stronger investment promotion effect on vulnerable families.Theoretically speaking,this study provides theoretical support for understanding the mystery of limited participation and promoting rural family financial investment.From the practical point of view,the research of this paper has the practical significance of improving the property income of rural households,thus increasing the income of rural households,realizing rural revitalization and common prosperity.Therefore,this paper puts forward relevant suggestions,the specific contents are as follows: first,we should pay attention to improving the digital financial ability of rural residents,and put forward corresponding suggestions from the three perspectives of the breadth,depth and financial knowledge of digital finance.Secondly,we should pay attention to the alleviation of financial exclusion in rural areas,and put forward relevant suggestions from three perspectives: information exclusion,risk exclusion and self-exclusion.Finally,attention should be paid to improving the digital financial ability of vulnerable households,and according to their characteristics,digital financial ability training policies should be put forward to provide theoretical ideas for solving the problem of digital inequality.