Happiness And Household Financial Assets Choice

With the gradual development of capital market, the residents’ property income have increased dramatically and play a more and more important role. The augment of households’ disposable income, the broad investment channel and the diversification of investment varieties make people gradually involve in the financial markets. As the main part of the residents’ investment decisions, household portfolio becomes the core issue of financial research. Since the US subprime mortgage crisis happened, Chinese has began to reflect on the economic growth mode and put forward the quality assured of economy, that is to increase the residents’ happiness. Happiness turns to a hot field. More scholars pay attention to it.As a comprehensive understanding and attitude of life, happiness might have an impact on residents’ preference, thereby affecting their selection in financial assets. The paper uses China Household Financial Survey(CHFS) data to analyze this topic. The empirical result shows that:firstly, happiness is significantly positive related with fixed deposits and negative related with holding stocks. Secondly, The impacts of happiness on household financial assets choice are diverse due to different risk preference but stable via time preference. In addition, wealth and income are basic factors which influence households’ decisions of investment;taking part in the social health insurance or commercial health insurance and improving education levels, will encourage more investors to participate in financial market.