Digital Finance and the Efficiency of Household Investment Portfolios

Abstract

In recent years, how to increase the property income of Chinese households has aroused widespread attention. Our study focuses on the impact and impact mechanism of digital finance on household investment portfolio efficiency in China. Our study reveals that digital finance in China can promote household investment portfolio efficiency. Digital finance development mainly affects household investment efficiency by influencing financial literacy and investor sentiment. Further, we found that household wealth had an inverted U-shaped effect on the impact of digital finance on household investment efficiency. And the enhancement of households’ preference for overconsumption inhibited the impact of digital finance on household investment portfolio efficiency.