Research On The Relationship Among Agricultural Risk Shock,Financial Response Behavior And Household Income

Household income is one of the important indicators to measure regional agricultural development and a family living consumption level,which might be affected and restricted by varieties of factors.As farmers are characterized by vulnerability and insufficient risk response ability,agricultural risk shock will not only directly affect on the income status of farmers,but also impact on their family production,investment and other behaviors,thus affecting the long-term development of the family.After suffering risk shock,the farmers will take a series of actions to deal with the financial behaviors which is one of the most effective means to cope with the impact of risk.Therefore,the choice of farmers’ financial response behavior when they are exposed to risk shocks,the role of financial behavior in coping with risk shocks and stabilizing farmers’ income,and the mechanism of its influence have become the key to study.Based on the theories of household income,risk shock and the behavioral finance and the review of relevant research results,this study built a theoretical research framework for the relationship among risk shock,financial coping behavior and household income.Using the field survey data of 559 peasant households in Shanxi Province,the DEMATEL method was used to analyze the relationship between the status quo,types and impacts of agricultural risk shock suffered by farmers,and Factor analysis and Pearson correlation coefficient analysis were used to conduct empirical analysis on 20 selected observational indicators of financial coping behavior,construct a financial response behavior indicator system and explore its interaction with risk shock and household income.Through establishing of the regulation effect model,introducing the interaction index,and using a variety of regression analysis methods to study the interaction among risk shock,financial response behavior and household income,this paper verified the regulation effect of financial response behavior,and analyzed the mechanism of financial response behavior on agricultural risk shock and household income.According to the research perspectives and methods of above,the main research conclusions of this paper are summarized into the following five aspects:(1)The surveyed farmers’ gender,health status,education level,planting scale and crop types all have certain ability to cope with risk shocks in different degrees and have significant positive impact on household income.Among them,male farmers with good health and high education level have higher income level.Compared with food crops,planting cash crops has a stronger ability to resist risk shock and can obtain higher agricultural income.Farmers with a large scale of crop cultivation are more likely to form large-scale production,so as to improve their agricultural income.(2)Shaanxi province is a risk-prone region,and farmers are mainly exposed to risk shocks from three aspects: natural risk,market risk and policy risk when they engaged in agricultural production.Based on the peasant survey data,the degree of the agricultural risk shock and agricultural income descriptive statistics analysis and empirical analysis,the results showed that: All of the three risk shocks have a significant negative impact on farmers’ income.Among them,market risks have the strongest impact on farmers’ income.Natural risks not only have a direct impact on farmers’ income,but also have an impact on market risks and policy risks.(3)Selection on the basis of theoretical analysis framework,farmers financial coping behavior observation index,on the basis of the construction of index system of farmers financial coping behavior,as farmers saving behavior,insurance,financial management behavior,lending behavior demand and borrowing four aspects,and the empirical analysis results show that: farmers financial behavior have significant positive effect on household income,and a significant correlation between financial behavior and risk shock,agricultural insurance related behavior for a slowdown in the natural risk shock effect is most obvious,peasant household savings behavior and financial behavior to slow down the strongest with the impact of market risk;Farmers’ borrowing behavior has the most obvious mitigation effect on policy risk.(4)The robustness test of the interaction term regression analysis and the hierarchical regression analysis of the moderating effect model shows that: As moderating variable between risk impact and household income,farmers’ financial coping behavior has a significant positive effect on mitigating risk impact and improving household income.By adopting a series of financial behaviors as a regulating variable,farmers can effectively prevent the impact of risk shock so as to stabilize or increase their income.(5)The influencing mechanism of farmers’ financial behavior is as follows: Before risk shock,for peasant household’s own financial knowledge reserves and the accumulation of experience,in order to avoid the uncertainty of agricultural income,usually through the purchase of agricultural insurance,savings and financial management,prevent and avoid risk,make the risk shock occurs through policy agricultural insurance claims,savings and financial management to improve production and living conditions,make the next issue of agricultural production can be smoothly carried out and into,after farmers,agricultural risk shock,through formal lending and informal lending,financing,adjusting the investment proportion of production factors,in order to get maximum benefit,farmers reduce the impact of risk shock on production behavior,make up for the income loss caused by risk shock,and stabilize the income level.