Can The Q&A Risk Questionnaire Predict Investor Risk Attitudes? Empirical Research Based On CHFS Database

On July 1,2017,the “Administrative Measures for the Appropriateness of Securities and Futures Investors” formulated by the China Securities Regulatory Commission was officially implemented.This management approach emphasizes and requires the implementation of the appropriate responsibilities of the operating organization.Through multi-level investor classification and risk-based product grading,it is committed to solving the problem of risk matching between investors and investment products,so as to meet the characteristics of adapting investors and strengthen investment.Protect the actual needs of the work.This requires financial services institutions to provide investors with risk assessments to provide investors with financial products or services that match their risk tolerance.However,how to accurately measure the risk preference of investors,whether the question-andanswer risk questionnaire can predict the investor's risk attitude,and make a strong explanation for the risk-taking of the actual investment behavior,is an unresolved issue and becomes a protection investment.The interests of the people and the regulation of the capital market is a major obstacle.The question-and-answer risk questionnaire is widely used by both theoretical and practical people because of its simple and easy operation,low cost and wide range of subjects,but there are also research scholars.It is pointed out that this method lacks incentives and is subject to the influence of individuals on their own cognitive bias,which is more subjective.Researchers have been controversial about whether the question-and-answer risk questionnaire has a good predictive power for investors' actual risk-taking behavior.Based on the China Household Financial Survey Data(CHFS),this paper uses the large sample and real data to test whether the risk assessment has predictive power for investors' subsequent investment behavior from the perspective of empirical analysis.At the same time,it is examined whether this explanatory power is heterogeneous and whether the interpretation effectiveness of different groups is different.Through the empirical analysis,the main conclusions are as follows:Compared with the experimental method,the questionnaire survey method is simple and easy to operate,and the cost is low.It can be carried out among a large group of people.At the level of household asset allocation,the self-reported risk preference measurement of the questionnaire is true for the actual financial investment of investors.The risk exposure has significant predictive power.And the investor's self-reported risk attitude has different effects on the impact of one unit on the family financial portfolio risk.Taking risk neutrality as a benchmark,the smaller the self-reported risk attitude,the lower the risk aversion,the greater the positive impact on the family financial portfolio risk.Self-reported risk attitudes The interpretation of financial portfolio risk does vary between groups of factors.Self-reported risk attitudes have a greater impact on the risk-taking of actual household financial investments in rural/insurance investors with work/residence,and greater explanatory power.There are no significant differences between families who participate in/do not participate in financial economic training and whether they are engaged in financial work.From the perspective of whether or not to engage in the financial industry,although the investment risk of financial industry practitioners is also U-shaped,it has a stronger risk trend in the actual allocation of household assets.The extremes of stock investment is the direct cause of the U-shaped polarization of the risk of China's family financial portfolio.Whether the family holds high-risk stock assets,investors' self-reported risk attitude has a significant explanation.The higher the risk aversion,the lower the likelihood that their families will participate in the stock market.In addition,when we further observe that the risk attitude takes different values,its marginal effect shows a decreasing trend.Therefore,the author believes that the investor's self-reported risk attitude in the question-and-answer questionnaire has significant explanatory power and predictive power for its risk-taking in actual family financial investment.From the perspective of investor protection,it is necessary for the operating organization to provide investors with a question-and-answer risk questionnaire for risk assessment.