Research On The Influence Of Children’s Structure To The Household Financial Asset Allocation

With the increase of household income and the improvement of household asset management awareness,it is particularly urgent and important to study how households allocate assets,especially household financial assets.In 2016,my country’s implementation of the second-child policy directly affected the children’s number as well as the gender ratio.We collectively regard the changes of children’s number and children’s gender as the changes of children’s structure.This provides a new perspective for studying the factors affecting household financial asset allocation.On the one hand,studying the impact of children’s structure to the household financial asset allocation can help optimize household property’s structure,improve the efficiency of household financial asset utilization,living standards and residents’ sense of happiness.On the other hand,studying the impact of children’s structure to the household financial asset allocation has a certain reference value to promote financial institutions to innovate financial products in accordance with changes of children’s structure,and optimize the household financial asset allocation.This article mainly uses data from the China Household Finance Surveys(CHFS)in 2017.We use Probit regressions to investigate the impact of the children’s structure on the breadth of household financial asset investment and Tobit regressions to investigate the impact of the children’s structure on the depth of household financial asset investment.The study found that:(1)The children’s number will significantly reduce the breadth and depth of stock investment,but it has no significant impact on the breadth and depth of risky financial asset investment.(2)Families with boys will significantly reduce the breadth and depth of investment in stocks and risky financial assets including stocks,while the families with girls are contrary to this.(3)On this basis,this article further investigates heterogeneous families,and the results show that in only-child family,boy will significantly reduce the breadth and depth of investment in stocks and risky financial assets including stocks,while girl is contrary to this.Based on the boy in only-child family,we find that the family which first child is a boy and the second child is a boy or a girl is not likely to participate in the stock market,and the family that first child is a boy and second child is a girl tends to be less likely to participate in the stock market than family with two boys.Similarly,based on a girl in only-child family,family with two girls and family that first child is a girl and second child is a boy will significantly reduce the breadth and depth of investment in stocks,and the stock investment reduction of the family that first child is a girl and second child is a boy is greater than the family with two girls.In addition,this article also considers different household income factors,regional differences and the addition of instrumental variables to test the robustness of children’s structure to household financial asset allocation.Regional differences include differences between east,middle,and west,and differences between urban and rural areas.The results show that the children’s structure still has a significant impact on the household financial assets allocation.In order to further explore the influence mechanism of children’s structure on household financial asset allocation,this paper analyzed the mediation effect of household income on children’s number to household financial asset allocation and the adjustment effect of education on children’s gender to household financial asset allocation,and inspect the mechanism,and the influence mechanism exists.Finally,based on the above analysis,we come up with the following suggestions: first,improve the social security system and increase household net income;second,innovate financial products and improve financial services;third,advocate correct childbearing and optimize the household financial asset allocation;fourth,standardize the development of financial market and guide residents to invest reasonably.