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Impact of internet use on value and diversity of risky financial asset portfolios

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  • Zhou, Xiaoshi
  • Vatsa, Puneet
  • Ma, Wanglin

Abstract

This study analyzed the impact of internet use on the value and diversity of risky financial asset portfolios. Portfolio diversity was computed using the Simpson and Shannon Indexes, and a double-robust inverse-probability-weighted regression adjustment estimator was used to analyze the 2017 China Household Finance Survey data. Findings showed that internet use was associated with higher value and diversity of risky financial asset portfolios. The associations were stronger for females than males. Specifically, internet use was associated with an increase of 57% in portfolio values of females compared to 18% of males; it was associated with increases of 310–313% and 97–99% in the portfolio diversity of females and males, respectively.

Suggested Citation

  • Zhou, Xiaoshi & Vatsa, Puneet & Ma, Wanglin, 2023. "Impact of internet use on value and diversity of risky financial asset portfolios," The Quarterly Review of Economics and Finance, Elsevier, vol. 89(C), pages 188-193.
    • Handle: RePEc:eee:quaeco:v:89:y:2023:i:c:p:188-193
    DOI: 10.1016/j.qref.2023.03.012
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    References listed on IDEAS

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    1. Junpeng Li & Wanglin Ma & Alan Renwick & Hongyun Zheng, 2020. "The impact of access to irrigation on rural incomes and diversification: evidence from China," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 12(4), pages 705-725, September.
    2. Barthel, Anne-Christine & Lei, Shan, 2021. "Investment in financial literacy and financial advice-seeking: Substitutes or complements?," The Quarterly Review of Economics and Finance, Elsevier, vol. 81(C), pages 385-396.
    3. Chen, Fuzhong & Hsu, Chien-Lung & Lin, Arthur J. & Li, Haifeng, 2020. "Holding risky financial assets and subjective wellbeing: Empirical evidence from China," The North American Journal of Economics and Finance, Elsevier, vol. 54(C).
    4. Wanglin Ma & Zhongkun Zhu, 2021. "Internet use and willingness to participate in garbage classification: an investigation of Chinese residents," Applied Economics Letters, Taylor & Francis Journals, vol. 28(9), pages 788-793, May.
    5. Brad M. Barber & Terrance Odean, 2002. "Online Investors: Do the Slow Die First?," The Review of Financial Studies, Society for Financial Studies, vol. 15(2), pages 455-488, March.
    6. Chenxin Leng & Wanglin Ma & Jianjun Tang & Zhongkun Zhu, 2020. "ICT adoption and income diversification among rural households in China," Applied Economics, Taylor & Francis Journals, vol. 52(33), pages 3614-3628, June.
    7. Junpeng Li & Wanglin Ma & Alan Renwick & Hongyun Zheng, 2020. "The impact of access to irrigation on rural incomes and diversification: evidence from China," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 12(4), pages 705-725, September.
    8. Yun Ye & Yongjian Pu & Ailun Xiong, 2022. "The impact of digital finance on household participation in risky financial markets: Evidence-based study from China," PLOS ONE, Public Library of Science, vol. 17(4), pages 1-16, April.
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    Cited by:

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    5. Li, Jingrong & Mi, Xinyu & Zhang, Chenlei & Qin, Yanran, 2024. "Social pension insurance and household risky asset investment: Evidence from China," The Quarterly Review of Economics and Finance, Elsevier, vol. 95(C), pages 219-233.

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    More about this item

    Keywords

    Internet use; Risky financial asset portfolios; IPWRA; Diversity; Heterogeneity;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • P36 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty

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