The Influence Of Personality Characteristics On Family Financial Asset Allocation

With the rapid development of China’s economic and society,the income of China’s traditional families needs to increase.Many families have accumulated enough wealth through years to participate in financial investments in varying degrees.However,compared with the developed capital market,Chinese households’understanding and participation in the financial market are still limited in many aspects.Parents,as irrational people,are generally more subjective and obedient in the process of decision-making and management of family environmental assets allocation,which often leads to lots of speculative behaviors,which makes it difficult for family financial theory to become a reality.Therefore,in recent years,researchers began to analyze family financial investment choice behavior from the perspective of personality characteristics.The purpose of this paper is to explore the internal influence mechanism of personality traits on family financial investment choice.The research process of this thesis is based on the relevant data of CFPS in 2018 and 2018 China family financial market analysis report.The data is mainly from the questionnaire survey on the personality characteristics of existing family parents,using the widely used personality classification method at home and abroad,namely Big Five personality characteristics.The purpose of this thesis is to investigate and draw the characteristics of personality development,investigate the personal information of parents and their family characteristic variables,and use the full sample Tobit model in the benchmark regression model to estimate the impact of parents’ personality traits on the allocation of family economic and financial enterprise assets.Through the series of empirical analysis of the relationship between family financial assets and parents’personal characteristics,it provides a scientific basis for the construction of family financial theory.After controlling the personality and family characteristics which come from the heart person of the family,the main conclusions are as follow.(1)The family with higher score of parents’ extraversion has lower high-risk financial assets,which has a significant inhibitory effect.The personality characteristics are extroverted,and the relationship between family holding savings and risk asset holding is more inclined to savings holding.(2)Families with high scores of parents’ strictness generally have higher asset allocation in domestic bank savings.(3)Families with high scores of parents’ neuroticism have a low degree of allocation of household assets to savings and high-risk financial investment.Neuroticism has a significant reverse inhibitory effect on household savings holdings and household financial assets holdings.(4)Families with higher scores of openness have higher degree of allocation of household assets to savings and high-risk financial investment.The openness of personality characteristics has a significant positive promoting effect on household savings holdings and household financial assets holdings.(5)Families with higher scores of progressive assimilation will be difficult to judge the relationship between the distribution of family assets and the allocation of family financial assets,because these kind of families are easy influenced by others when they are allocating there assets.In the final test of regression analysis results,this thesis adopts robustness analysis.The specific method is to replace the personality characteristics of parents by those of their spouses,and then make regression analysis again on the personality characteristics of their spouses.The same conclusion is obtained,that is,the results of regression analysis still have certain utility.