The Relationship Between Individual Investor Characteristics And Risk Attitude And Its Impact On The Return

Chinese stock market has a history of nearly 27 years from December 1990 and July 1991 when the Shanghai stock exchange and Shenzhen stock exchange began to do business,but there are still many places which are not mature existing in many aspects.In addition to the drastic fluctuations in the market,the quality of listed companies is low,the irrational structure of investors and the legal system is not perfect and so on,and the risk education of investors in the market is not enough.Among them,the individual investors as the main force of China’s stock market are lack of the necessary investor protection mechanism and rational investment guide.In recent years,with the deepening financial reform,Chinese stock market becomes more market-oriented,the variety and quantity of financial products is also more and more,all kinds of quantitative trading means makes investors more and more dazzling.In this condition,individual investors compared with the past will face more risk.Therefore,how to reduce the risk of participating in the stock investment and how to get a more stable income has become an issue of great concern to investors and management.In practice,it is not difficult to find that not all investors are risk averse in any market,nor could all be risk seeking,and nor could all be rational.Any normal individual in the market must be diversified,there must be heterogeneity,so that risk aversion,risk neutral and risk in pursuit build up three types of investors,and rational and non rational investors should be cross exist.In the process of economic development,different investors have different attitudes towards risk preference,and different decision-making objectives will lead to different investment choices.Even for rational investors,because of their different investment objectives,funding sources and financial strength,their ability to withstand the risk or the risk attitude is different,and then it will have great difference in asset selection.Moreover,the investors in the stock market are not completely rational,and their choice of assets will be affected by many factors,such as psychological expectations,public opinion,their own knowledge and ability.So we need a reasonable portfolio theory and investment choice model to guide investors to have rational allocation of their own funds,reasonable to optimize the resources,and to improve the market efficiency,and also to promote the formation of effective market.In this article,we decided to start from the investor’s risk attitude,according to Z securities company for the classification of individual investors’ risk attitude,then according to the characteristics of individual investors to individual investors’ risk attitude analysis,find out the relationship between the different risk attitude of investors;the rate of return on investment analysis,according to the investors are different more appropriate investment advice.Furthermore,the study of the relationship between investor’s attitude and stock return will help investors to find their own investment targets and methods of operation.At the same time,it has important practical significance for strengthening the rational investment of investors and improving the efficiency of China’s stock market supervision.It also helps to ensure the stability and healthy and sustainable development of China’s stock market.The stock market is volatile,the securities investment has both profit and loss.According to financial theory,the assumption of risk is positively related to the return on investment,which is based on the majority of investors’ risk aversion.So do Chinese investors prefer risk or risk aversion?What is the relationship between investors risk attitude and their return?What is the impact of the customer’s risk tolerance on the return of security investment?It is still not clear,and this paper will discuss these issues,and then we can give investors more useful advice about how to earn more money based on the results of the survey of risk investment.In order to solve these problems,this paper used to analyze the relationship between the risk attitude of investors investors’ age and sex,turnover frequency and investment scale respectively,and using multiple linear regression model for the effects of risk attitude of investors by regression analysis using multiple linear regression model to analyze the influencing factors of stock investment returns to investors,and then verify whether the the high degree of risk preferences of investors can get a higher return on investment.Through research,we draw the following conclusions:(1)There was a negative correlation between age and risk preference of investors,that is mean when investors are older,they are more conservative investors;(2)The risk appetite of investors and the degree of gender is not relevant;(3)The relationship between risk attitude and preference related investment positively investors,the investment scale is big,the investor the greater the degree of financial assets,investors risk appetite for more;(4)The transaction frequency was positively related to investors,the investors trading frequency increases,investors are more inclined to risk preference;(5)The relationship between the return of securities investment and the degree of risk preference is positively related,that is,the higher the risk preference degree of investors,the higher the rate of return they can get in the stock market;(6)The larger the stock investment of individual investors are,the higher the rate of return on investment will be.The individual stock investment scale is larger,it has more financial assets,but also from the reflection of the success of investors in the society,it often has a professional investment advisers and more information,so that it can get higher yields.