Internet Usage and Household Investment on Risky Financial Assets

Abstract

Using panel data from the China Family Panel Studies for 2010, 2014 and 2016, this paper uses a two-part model, with the first part using a fixed-effects panel logit model and the second part using a linear logit fixed-effects model to study the impact of Internet usage on Chinese households' participation in risky financial markets and the intensity of investment in risky assets after participation. The results find that Internet usage can promote household participation in the risky finance market and increase household investment in risky assets. Therefore, accelerating Internet usage can promote Chinese households' participation in the risk finance market.