Effect Of Background Risk On Chinese Family Financial Asset Allocation

The empirical analysis of the classical theory of asset theory believes that rational investors should "put their eggs into different basket in order to avoid risks and increase revenue and hold a decentralized asset portfolio whose ratio depends on the risk preference of investors.However,scholars from a number of countries like the United States,Italy,France and other countries have demonstrated that many families do not hold a diversified portfolio and there is a risk of the market's "limited participation" phenomenon.In order to give a better explanation of the family's financial decision-making behavior,more and more scholars begin to study from the perspective of imperfect market theory.The background risk is one of the perspectives of family asset allocation.At present,foreign scholars have studied the impact of background risk on family risk financial assets through various perspectives.However,due to the lack of long-term data in our country,there are still gaps in the research field.Therefore,this paper uses the micro survey data of CHFS to study the choice behavior of Chinese family risk financial assets based on the perspective of background risk.This paper uses the data collected by CHFS in 2011,and constructs a TOBIT model for empirical analysis in order to explore the factors that affect the allocation of family risk financial assets in China as the main objective.This model takes the proportion of family risk financial assets as the explanatory variable,and the background risk is subdivided into three key variables:labor income risk,health status,business and real estate investment.In addition,the model also sets control variables,such as wealth and income,credit constraints,risk attitudes,subjective well-being,demographic characteristics,etc.In this paper,STATA11 is used to analyze the data,and the results are basically consistent with the research hypothesis.The main conclusions of this paper are:he labor income risk of family financial managers played the reverse role in hold percentage of financial risks assets.On the contrary,physical condition and health secure level played the positive role.Commercial and real estate investment showed the performance of Crowding Effect on the risk financial assets.Furthermore,the wealth and income effects existed in family risk asset allocation obviously,credit constraints and subjective well beings were not obvious.