IDEAS home Printed from https://ideas.repec.org/a/eee/reveco/v96y2024ipas1059056024005860.html
   My bibliography  Save this article

Political background, digital finance, and risky financial asset allocation

Author

Listed:
  • Liu, Jiankun
  • Zhang, Yunliang
  • Ding, Chante Jian

Abstract

The influencing factors of household financial asset allocation have been widely discussed in household finance, but little is known regarding the impact of political background. Using data from the China Family Panel Studies spanning 2012 to 2020, this paper examined the relationship between political background and risky financial market participation and investigated whether digital finance could moderate the relationship. The findings demonstrated that political background had a positive impact on households’ participation in the risky financial market in China. Furthermore, social networks, credit support, and subjective well-being were the channels through which political background promoted risky financial asset holdings. In addition, the positive effect of political background on risky financial market participation would be mitigated by the development of regional digital finance. Our study explained the limited participation puzzle in the risky financial market in China from the perspective of political background and highlighted the importance of an inclusive financial environment to reduce the inequality of risky financial market participation.

Suggested Citation

  • Liu, Jiankun & Zhang, Yunliang & Ding, Chante Jian, 2024. "Political background, digital finance, and risky financial asset allocation," International Review of Economics & Finance, Elsevier, vol. 96(PA).
    • Handle: RePEc:eee:reveco:v:96:y:2024:i:pa:s1059056024005860
    DOI: 10.1016/j.iref.2024.103594
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1059056024005860
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.iref.2024.103594?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Risky financial assets; Political background; Digital finance; China;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
    • G51 - Financial Economics - - Household Finance - - - Household Savings, Borrowing, Debt, and Wealth
    • G53 - Financial Economics - - Household Finance - - - Financial Literacy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:reveco:v:96:y:2024:i:pa:s1059056024005860. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/620165 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.