An Empirical Study On Factors Affecting Risk Preference Of Individual Financial Management

Exploring the differences among individual investors has always been an important research field in economics.With the increasing of the rich and the increasing of the disposable income,the number of people who use financial management to maintain and increase the value of their wealth is growing like a blowout.It is significant to study the distribution of personal financial assets from micro perspective.This paper aims to investigate the individual differences of the respondents,and to explore the factors that influence the risk preference of personal financial management by using the distribution of high-risk assets and low-risk assets in personal financial management tools.At present,the researches on the influencing factors of personal financial risk preference only focus on the basic characteristics of individuals:age,gender,income,educational background,health condition and so on.In this paper,the achievement motivation of psychology is first introduced as a factor to influence personal financial risk preference.Economic region and occupational stability are also factors that influence personal financial risk preference.In this paper,the economic areas of China are divided into three regions:eastern,central and western.Meanwhile,the occupations of the subjects are classified into three categories:stable,general stable and unstable.Emphasis is placed on the following three factors:achievement motivation,career stability and geographical area,which influence personal financial risk preference.By investigating the basic information of individual residents and the distribution of financial assets,the results show that achievement motivation,occupational stability and geographical area have significant positive effects on personal financial risk preference.On this basis,the author further studies the influence of investor's position on personal financial risk preference,and draws a conclusion that grassroots managers prefer high-risk financial products when they invest in financial assets.With the rise of positions,they tend to be more conservative in investment.