Research On The Impact Of The Number Of Children On Family Risk Financial Investmen

With the rapid development of economy in China,the income and wealth levels of resident households have steadily increased,but the enthusiasm of households to participate in risky financial investment remains relatively low,and the proportion of risky financial assets held is relatively small.Studying the risky fi nancial investment behavior of families not only helps families to increase their wealth,but also has important implications for the perfect development of financial markets.With the continuous adjustment of fertility policy,the change of the number of children not only changes the family structure,but also has an impact on the investment decision of families.Against this background,this paper uses empirical analysis to study the impact of the number of children on households’ risky financial investments and to explore the transmission mechanism and moderating effects from a household perspective,based on risk preference theory,portfolio theory,life-cycle theory and behavioral finance theory.Using the 2019 China Household Finance Survey(CHFS)data,this paper first analyzes the relationship between the number of children and the breadth and depth of household risky financial investment using the Probit and Tobit models,and distinguishes the difference in the effects of the number of boys and girls,uses the instrumental variables approach to address the possible endogeneity of the model,and by expanding the year span,replacing the explanatory variables and changing the sample size The robustness of the model is tested by expanding the year span,replacing the explanatory variables and changing the sample size;second,risk preference and parental wage income are selected as the mechanism variables to further explore the influence mechanism of the number of children and to analyze the moderating effects played by subjective well-being and employment stability in the influence;finally,the heterogeneous influence of the number of children is discussed in terms of both regional and urban-rural differences.The study shows that the number of children has a significant negative effect on the breadth and depth of household risky financial investment,with the suppressive effect of the number of boys being more pronounced,and that household characteristics variables such as age and gender,as well as household characteristics variables such as total household consumption,also have an impact on household risky financial investment.The results of the heterogeneity analysis show that the negative effect of the number of children in households on risky fina ncial investment is more pronounced in the eastern and urban regions compared to the central and western regions and rural regions.The results of the impact mechanism test indicate that the increase in the number of children affects the family’s risk appe tite and parents’ wage income,thus affecting the breadth and depth of risky financial investment;the moderating effect analysis shows that subjective well-being and employment stability play a negative moderating effect on the relationship between the nu mber of children and family risky financial investment.Based on theoretical and empirical analyses,this paper puts forward relevant policy recommendations to improve the financial asset allocation pattern of Chinese household.