Research On The Influence Of Risk Cognition On Investment And Financial Participation Of Chinese Households

With the continuous regulation and opening of my country’s financial management market,financial management services have affected the lives of ordinary residents in my country.The income and living standards of Chinese residents have been greatly improved,and the rational distribution of wealth has far-reaching implications for every family.However,in recent years,there is a big gap between the returns of the investment market and the cognition of investment risks in my country’s household investment.How to make residents understand the risks of economic investment and improve residents’ awareness of risks has become a problem nowadays.An important consensus on social capital management and property investment.Based on the exploration of residents’ risk cognition and investment and financing participation factors,this paper deeply reveals the influence of certain factors on the risk cognition of investment and financing.The data in this paper comes from a questionnaire survey,select some common demographic factors in the process of residents’ investment management,such as gender,age,education level,etc.,and analyze these factors.These factors are used as the influencing variables on investment and financial management,through the data sorting and descriptive analysis,and then use the Logistic regression model to carry out regression analysis.In the process of regression analysis,this paper uses important software tools such as Excel and Stata.After the process of regression analysis on the data,it is found that the degree of risk perception has a positive correlation with investment.The higher the ability of residents’ risk perception,the greater the probability of their participation in investment and wealth management.At the same time,the level of income will also determine the status of investment.Individuals with higher income also have a stronger tendency to invest.In addition,the logistic regression model is used to analyze the factors that affect the level of risk cognition.Among the selected factors,age and education will play an important role in determining the degree of personal risk cognition.The influence of age on risk cognition showed a trend of "rising first and then decreasing",and the people with higher cognition were concentrated in working age,and the cognition of non-working age was less.The effect of education on risk perception is that higher education will enhance cognitive ability,and vice versa.At last,this paper uses the OLS model to carry out regression analysis on the stability of each factor,and proves the correctness of the conclusions obtained.Finally,the optimal conditions are given in combination with the actual problems faced by investors,and corresponding guidance and suggestions are given to deal with the complex investment environment.