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Does mobile payment adoption increase household portfolio diversification? Evidence from China

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  • Qiu, Weisong

Abstract

Extensive documentation indicates that holding highly concentrated portfolios can lead to significant losses in financial welfare. Using data from the 2017 to 2019 China Household Finance Survey, this study examines the impact of mobile payment adoption on household portfolio diversification. Using a two-way fixed effects model, we identify a positive correlation between mobile payment usage and the diversification of household portfolios. This relationship withstands various robustness tests, encompassing analyses for endogeneity, selection bias, and alternative proxies for key variables. Mechanism analysis indicates that mobile payments function via financial information and risk preference. Heterogeneity analysis suggests that the positive impact of mobile payments is particularly pronounced for households with lower educational attainment, those facing health risks, and residents of rural areas.

Suggested Citation

  • Qiu, Weisong, 2025. "Does mobile payment adoption increase household portfolio diversification? Evidence from China," Finance Research Letters, Elsevier, vol. 75(C).
    • Handle: RePEc:eee:finlet:v:75:y:2025:i:c:s1544612325001758
    DOI: 10.1016/j.frl.2025.106911
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    More about this item

    Keywords

    Mobile payment; Information and communication technology; Digital finance; Portfolio diversification; Financial welfare;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth

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