Impact of internet use on value and diversity of risky financial asset portfolios

Abstract

This study analyzed the impact of internet use on the value and diversity of risky financial asset portfolios. Portfolio diversity was computed using the Simpson and Shannon Indexes, and a double-robust inverse-probability-weighted regression adjustment estimator was used to analyze the 2017 China Household Finance Survey data. Findings showed that internet use was associated with higher value and diversity of risky financial asset portfolios. The associations were stronger for females than males. Specifically, internet use was associated with an increase of 57% in portfolio values of females compared to 18% of males; it was associated with increases of 310–313% and 97–99% in the portfolio diversity of females and males, respectively.