Financial Advisers And Household Asset Allocation Efficiency

Based on survey data from China Household Finance Survey(CHFS)in 2017 and 2019,this paper examines the impact of financial advisers on household portfolio efficiency.The empirical results show that the use of financial advisers by Chinese household residents can significantly promote the efficiency of household asset portfolio and help household residents to better allocate assets.At the same time,it is found that people with higher financial knowledge,higher education level,female,unmarried,risk preference,more assets and living in first-tier cities are more inclined to use financial advisers,and there is an inverted U-shaped relationship between the number of years of Chinese family residents using financial advisers and their family asset portfolio.Furthermore,this paper finds that the use of financial advisers can improve the efficiency of household asset portfolio by reducing the extreme risk preference of household residents,improving their cognition of professional investment products and increasing their attention to economic and financial information.Heterogeneity analysis shows that high level of financial knowledge,medium assets and the use of financial advisers by people over 60 years old have greater effects on promoting the efficiency of household asset portfolio.Finally,this paper puts forward some suggestions,such as strengthening investor education,improving financial knowledge level of family residents and encouraging family residents to use financial advisers.