Financial literacy and household asset allocation: Evidence from micro‐data in China

2021 ◽  
Author(s):  
Xiaomeng Lu ◽  
Jingna Xiao ◽  
Yu Wu
Keyword(s):  
Asset Allocation ◽  
Financial Literacy ◽  
Micro Data ◽  
Household Asset

scholarly journals Analysis of asset risk and household Financial Asset Allocation structure—Empirical analysis from a nonlinear model

2021 ◽  
Vol 235 ◽  
pp. 01039
Author(s):  
Zhanbing Huang ◽  
Yu Lu
Keyword(s):  
Empirical Analysis ◽  
Asset Allocation ◽  
Financial Literacy ◽  
Family Income ◽  
Mutual Influence ◽  
Probit Model ◽  
Financial Asset ◽  
Household Asset ◽  
Asset Risk ◽  
Internal Relationship

Chinese households now have a good understanding of finance and their asset allocation choices are increasingly skewed towards financial products. At present, most domestic and foreign researches on the structure and choice of household asset allocation mainly analyze the influence of residents’ characteristics or financial literacy on household asset allocation, while few researches on the internal relationship between household risk, asset structure and allocation choice. Based on CHFS data and the theory of asset investment behavior, this paper systematically analyzes and risk assets and family financial asset allocation structure of mutual influence and role, an empirical analysis of the influencing factors of residents in our country family financial asset allocation structure by using Probit model and Tobit model, pay attention to risk assets, family income and other factors, a deeper understanding of family financial asset investment circumstances.

scholarly journals FACTORS AFFECTING FINANCIAL CONSUMERS’ PRIVATE PENSION PLAN DECISIONS: A LITERATURE REVIEW AND A CONCEPTUAL FRAMEWORK PROPOSAL

2016 ◽  
Vol 4 (2) ◽  
Author(s):  
Aslı Elif Aydın ◽  
Elif Akben Selçuk
Keyword(s):  
Asset Allocation ◽  
Financial Literacy ◽  
Pension Plan ◽  
Private Pension ◽  
Private Pensions ◽  
Factors Affecting ◽  
Private Pension Plan ◽  
Saving Decisions ◽  
Dispositional Factors ◽  
Allocation Decisions

The objective of this study is to propose a framework related to financial consumers’ private pension plan decisions. Specifically, we review the factors affecting consumers’ participation, contribution and asset allocation decisions regarding private pensions. The factors discussed include situational and dispositional factors, personality, motivation, financial literacy, and external influences. Based on this survey of literature, we develop a number of propositions, which are expected to benefit individual retirement planners and pension institutions in gaining a better understanding of retirement saving decisions.

scholarly journals Hyperbolic discounting and life-cycle portfolio choice

2015 ◽  
Vol 14 (4) ◽  
pp. 492-524 ◽  
Author(s):  
DAVID LOVE ◽  
GREGORY PHELAN
Keyword(s):  
Life Cycle ◽  
Stock Market ◽  
Portfolio Choice ◽  
Asset Allocation ◽  
Financial Literacy ◽  
Hyperbolic Discounting ◽  
Fixed Cost ◽  
Future Earnings ◽  
Financial Wealth ◽  
The Impact

AbstractThis paper studies how hyperbolic discounting affects stock market participation, asset allocation, and saving decisions over the life cycle in an economy with Epstein–Zin preferences. Hyperbolic discounting affects saving and portfolio decisions through at least two channels: (1) it lowers desired saving, which decreases financial wealth relative to future earnings; and (2) it lowers the incentive to pay a fixed cost to enter the stock market. We find that hyperbolic discounters accumulate less wealth relative to their geometric counterparts and that they participate in the stock market at a later age. Because they have lower levels of financial wealth relative to future earnings, hyperbolic discounters who do participate in the stock market tend to hold a higher share of equities, particularly in the retirement years. We find that increasing the elasticity of intertemporal substitution, holding risk aversion constant, greatly magnifies the impact of hyperbolic discounting on all of the model's decision rules and simulated levels of participation, allocation, and wealth. Finally, we introduce endogenous financial knowledge accumulation and find that hyperbolic discounting leads to lower financial literacy and inefficient stock market investment.

The Impact of SNAP Vehicle Asset Limits on Household Asset Allocation

2016 ◽  
Vol 83 (1) ◽  
pp. 146-175 ◽  
Author(s):  
Deokrye Baek ◽  
Christian Raschke
Keyword(s):  
Asset Allocation ◽  
Household Asset ◽  
The Impact

scholarly journals FACTORS AFFECTING FINANCIAL CONSUMERS’ PRIVATE PENSION PLAN DECISIONS: A LITERATURE REVIEW AND A CONCEPTUAL FRAMEWORK PROPOSAL

2016 ◽  
Vol 4 (2) ◽  
pp. 226-245
Author(s):  
Aslı Elif Aydın ◽  
Elif Akben Selçuk
Keyword(s):  
Asset Allocation ◽  
Financial Literacy ◽  
Pension Plan ◽  
Private Pension ◽  
Private Pensions ◽  
Factors Affecting ◽  
Private Pension Plan ◽  
Saving Decisions ◽  
Dispositional Factors ◽  
Allocation Decisions

The objective of this study is to propose a framework related to financial consumers’ private pension plan decisions. Specifically, we review the factors affecting consumers’ participation, contribution and asset allocation decisions regarding private pensions. The factors discussed include situational and dispositional factors, personality, motivation, financial literacy, and external influences. Based on this survey of literature, we develop a number of propositions, which are expected to benefit individual retirement planners and pension institutions in gaining a better understanding of retirement saving decisions.

Household Asset Allocation, Offspring Education, and the Sandwich Generation

2015 ◽  
Vol 105 (5) ◽  
pp. 611-615 ◽  
Author(s):  
Vicki L. Bogan
Keyword(s):  
Asset Allocation ◽  
Capital Accumulation ◽  
Pension System ◽  
Personal Health ◽  
Wealth Accumulation ◽  
Household Asset ◽  
Sandwich Generation ◽  
College Savings ◽  
Households With Children

This paper finds households with children and elderly dependents, the “Sandwich Generation,” significantly reduce both college savings and stockholding. Having any elderly dependents decreases the probability of both stockholding and college savings by twice as much as poor personal health. Hence, these results have critical implications as they demonstrate the importance and magnitude of links between the pension system, college financial aid, and wealth accumulation. Elderly dependents limiting parental funds for offspring education can decrease offspring long-term earnings potential via decreased human capital accumulation. Furthermore, decreased stock holdings can decrease long-term wealth accumulation and thus intergenerational wealth transfers.

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