Study On The Influence Factors Of Household Financial Asset Structure Based On Life-Cycle Theory

In recent years, the total amount of China’s national economy has continued to grow with the rate of more than10%, the financial assets of residents increase rapidly. At the same time, the increasing degree of aging and the declining birth rate lead to significant change of the demographic structure and demographic changes have had an important impact on economic and social. This paper studies how family life cycle changes affect the residents’financial asset structure, in order to provide some reference on dealing with population aging and optimizing the structure of residents’financial assets.Classic life cycle hypothesis and life-cycle investment theory proved that age have important implications for household consumption and portfolio, many subsequent scholars also found that residents of the portfolio has a life cycle characteristics. In this paper, based on the life cycle theory, we firstly theoretical analysis of the factors of the residents financial assets structure; secondly, we analysis of the life cycle characteristics of the financial asset structure of our residents at the macro level; at last, we establish the life cycle model about the structure of household financial assets at the micro level on the basis of previous studies and families in Jiangsu Province for investigation. After analysis of the structure of household financial assets with Tobit model, we get conclusions as follows:Firstly, from a macro point of view, the structure of China’s resident financial asset structure shows significantly characteristics:with the growth of China’s middle-aged population proportion, proportion of residents’financial assets in risky assets gradually increasing; with the growth of China’s elderly population proportion, the proportion of savings held by residents of the financial assets of residents’steady decline.Secondly, from the analysis results of factors influencing of household financial assets structure of Jiangsu Province, we find that the structure of household financial assets has significantly life cycle characteristics. With the development of the family life cycle, on the one hand, households will first gradually reduce the proportion of their savings deposits and then increase, on the other hand, the proportion of risk assets held in the family life cycle, showing a inverse "U" shape, with the growth of the age of the head of household, the proportion of risk assets is first increase and then reduce. To some extent, the level of education of the family investment decision-makers affected the proportion of risk assets held by the family, but it has no significant impact on the proportion of savings assets.Thirdly, from the results of empirical analysis of micro family, we find that household wealth, housing, and have an important impact on household financial assets structure. With the growth of the wealth of the family, the residents risk assets ratio manifests decreasing trend after the first increase. Housing shows significant "crowding out" effect on the residents’risk assets holding. Family Burden population has positively correlated with the proportion of savings deposits in household financial assets, but has negative correlation with the proportion of risk assets held by the family. The family of a perfectly social security are relatively holding lower proportion of savings.The regional factors of family significant impact the possession of the family risk assets ratio, a higher proportion of risky assets held by urban residents compared to rural residents.Based on the above conclusions, the paper proposes the following policy recommendations:First, to provide new ideas on the government’s handling of the problem of aging. Second, promote the reform and innovation of the commercial banks. Third, the stability and control of prices is still very necessary. Fourth, improve the construction of the rural finance and the security system.