The Impact of Financial Literacy on Family Venture Capital -- Analysis Based on 2019 CHFS Data

Abstract

The improvement of economic level has accumulated residents' wealth, and the rapid development of the financial market has also provided a large number of participation opportunities for residents' families. However, in reality, the participation of Chinese households in the financial market is not optimistic, and their financial literacy level may be one of the factors affecting their participation in the financial market. This article explores the relationship between financial literacy and household risk asset investment participation and investment depth by using CHFS2019 data. Through probit and tobit models, we found that there is a strong positive relationship between financial literacy level and household risk asset investment participation and investment depth. At the same time, this article further tests the research conclusions through instrumental variable method and robustness analysis. Finally, based on the research findings, this article provides suggestions to the government, financial institutions, and resident households, with the aim of benefiting Chinese resident households in terms of financial market participation and investment depth.