Guanxi, Financial Literacy and Household Portfolio Efficiency

DOI

10.2991/978-94-6463-030-5_16How to use a DOI?

Keywords

Guanxi; Household Finance; Portfolio Efficiency

Abstract

Guanxi is an unique concept of China, which loosely equals to “social relationship”. This passage investigates the relationship between guanxi and household portfolio efficiency. We use factor analysis to measure guanxi in a numerical approach. To solve the possible endogenous problem, we chose “whether parents are communist party member” as an instrumental variable. Via 2SLS model, we find that there is a significant positive influence that guanxi has on household portfolio efficiency. To verify a possible mechanism of this casual effect, we establish an mediation model in which individual financial literacy is the intermediary variable. The result proves that guanxi influences portfolio efficiency by affecting individuals’ financial literacy.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Nantong Chen
PY  - 2022
DA  - 2022/12/20
TI  - Guanxi, Financial Literacy and Household Portfolio Efficiency
BT  - Proceedings of the 2022 International Conference on Bigdata Blockchain and Economy Management (ICBBEM 2022)
PB  - Atlantis Press
SP  - 144
EP  - 151
SN  - 2589-4919
UR  - https://doi.org/10.2991/978-94-6463-030-5_16
DO  - 10.2991/978-94-6463-030-5_16
ID  - Chen2022
ER  -