The Impact Of Subjective Sense Of Security On Household Risky Financial Asset Allocatio

Since the reform and opening up,China’s economy has grown rapidly and the level of social wealth has been rising.It has become the second largest economy in the world and made remarkable achievements.Benefiting from the increase of work income and social welfare brought by economic growth,the scale of family wealth in China is also rising.However,while the total amount of family wealth is growing,the imbalance of family asset allocation is becoming increasingly serious,especially the low proportion of risky financial asset allocation.The related problems are known as the "mystery of limited participation".Studying and analyzing the causes,effects and solutions of this problem is of great significance to optimize the allocation of family assets and improve the level of family wealth.Therefore,the research on mystery of limited participation has become a heated topic.In this context,the article uses the 2018 China Household tracking survey(CFPS)data to analyze the characteristics and internal mechanism of the impact of subjective security on the breadth and depth of household risky financial assets.Firstly,this paper systematically combs through the relevant literature,and puts forward the research hypothesis on this basis.Secondly,it selects whether households invest in risky financial assets and the proportion of risky financial assets in total assets as proxy variables to measure the breadth and depth of household risky financial assets.Probit and Tobit models are used for empirical analysis to test the impact of subjective security on household risky financial asset allocation.Then,using the intermediary effect model,this paper discusses the intermediary effect of risk attitude,cognitive ability and subjective well-being,and further analyzes the synergistic effect of aging and subjective security on asset allocation;In addition,this paper classifies the samples according to the individual’s health level and education level,and discusses the possible heterogeneity through grouping regression.Finally,in order to verify the reliability of the research,this paper uses relevant methods to test the robustness of the relationship between subjective security and family risky financial assets.The main conclusions of the study are as follows:First,subjective security has a significant positive impact on the breadth and depth of risky financial assets held by families.Individuals with higher subjective security are more inclined to hold risky financial assets and increase their proportion in total assets.The relevant results are still significant after endogenous test with instrumental variable method.Second,subjective security will affect the allocation of family risky financial assets through risk attitude,cognitive ability and subjective well-being.The interaction between aging and subjective security is also significantly related to the allocation of family risky financial assets.The intensification of aging will have a significant inhibitory effect on the promotion of subjective security on risky financial assets.Third,the results of the heterogeneity analysis of health level show that: for individuals with low health level,the subjective sense of security will only affect the breadth of risky financial assets,and the impact on the depth of holding is not significant,while for individuals with high health level,the subjective sense of security has a positive impact on the breadth and depth of risky financial assets.At the same time,compared with low-health individuals,subjective security plays a stronger role in promoting the breadth and depth of risky financial assets held by high-health individuals.There are obvious differences between individuals with different levels of education in the impact of subjective security on families holding risky financial assets.Compared with individuals with lower levels of education,the promotion of subjective security on risky financial assets is gradually weakened.Based on the prospect theory and the framework of individual psychological differences,this paper introduces subjective security,an important part of individual psychology,into the field of family finance research.On the basis of CFPS data and referring to previous studies,this paper constructs a comprehensive index of subjective security score by using entropy method,deeply discusses its impact on the allocation of household risky financial assets,further analyzes its impact path,and enriches and supplements the existing research on household finance.