Digital finance’s impact on household portfolio diversity: Evidence from Chinese households

Jingxuan Dong

Finance Research Letters, 2024, vol. 70, issue C

Abstract: Herein, we investigate the connection between digital finance and household portfolio diversity using data from the China Household Finance Survey, conducted in 2017 and 2019. Results indicate that digital finance enhances portfolio diversification, particularly among households with urban registration, higher education and higher income levels. The mechanism analysis reveals that digital finance boosts a household’s portfolio diversification by enhancing financial literacy and easing liquidity constraints. Our findings underscore the importance of promoting digital finance and financial innovation by government agencies, which can improve a household’s investment income and well-being.

Keywords: Digital finance; Household portfolio diversity; Financial literacy; Liquidity constraints (search for similar items in EconPapers)
JEL-codes: D10 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S154461232401376X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:70:y:2024:i:c:s154461232401376x

DOI: 10.1016/j.frl.2024.106347

Access Statistics for this article

Finance Research Letters is currently edited by R. Gençay

More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().