The Impact Of Credit Constraints On Household Art Asset Allocation

There has been much interest in how credit constraints affect household asset allocation decisions.While much of the literature has explored how credit constraints affect household entrepreneurship,consumption and financial asset allocation,little research has paid attention to the relationship between credit constraints and household art asset allocation.Based on this,this research examines how credit constraints affect households’ allocation of art assets in the context of art market in China.This paper systematically reviews the domestic and foreign literatures on family finance,family asset allocation research status,the effectiveness of family asset allocation and family art asset allocation.In the empirical test part,this paper explores the influence of credit constraints on household art asset allocation and its internal mechanism by using the survey data of Chinese household finance,and constructing the benchmark regression model and the intermediary influence mechanism model.The empirical findings reveal that:(1)Credit constraints negatively impact on household artwork asset allocation.That is,the higher the degree of credit constraints faced by households,the lower the market value of their artwork holdings,which further suggests that credit constraints reduce household allocation to artwork assets.(2)The effect of credit constraint on household art asset allocation is more pronounced among urban households and those in the western region.(3)Risk attitudes play a part in mediating the negative effect of credit constraints on household art asset allocation,which means that high credit constraints negatively affect household art asset allocation decisions by reducing the risk preference of households.Combining the above findings,this paper proposes policy recommendations based on three aspects:(1)Innovate credit products and provide diversified financial support based on actual conditions;(2)Strengthen market governance and improve the operation mechanism of art market transactions;(3)Enhance thematic education to guide investors to make rational investment decisions.