Financial Availability, Financial Market Participation and Household Portfolio Choice
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| Title | Financial Availability, Financial Market Participation and Household Portfolio Choice
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| Author | ZhichaoYin Yu Wu and Li Gan |
| Organization | Southwestern University of Finance and Economics |
| Email | yzc@swufe.edu.cn |
| Key Words | Financial Availability; Financial Market Participation; Household Portfolio Choice |
| Abstract | Using China Household Finance Survey (CHFS) data, this paper investigates the impacts of financial availability on Chinese households’ financial market participation and portfolio choice both in the formal financial market and in the informal financial market. We find that the increase in the financial availability will enable households more actively to participate in the formal financial market and increase their risky asset holdings in the formal financial market. While in the informal financial market, households decrease their participation in the informal financial market and decrease their risky asset holdings in the informal financial market. In conclusion, the financial availability has a positive effect on households’ participation in the formal market and has a negative effect on it in the informal market. |
| Serial Number | WP537 |
| Time | 2013-10-15 |
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