Religious Beliefs And Household Risky Assets Selection

Since the 1990 s,the reform and opening up have been further deepened.On the one hand,China's economy and society have experienced rapid development,national wealth has grown significantly,and the size of household assets has increased tremendously.On the other hand,with the development of the national economy in recent years,it's worth noting that the proportion of residents of religious beliefs is generally on the rise in China.In the period when the economy has changed from high-speed growth to medium-high-speed growth,as household income and asset have increased to a certain level,household asset selection and allocation has become a core issue.The impact of formal institution such as laws and taxes on household asset selection and allocation has been extensively verified.In addition to the formal institution,religion,as an informal cultural system,also affects household financial decision-making behaviors.At present,there are many domestic research results on household asset selection,but there are few studies on household asset selection from a cultural perspective.This article is expected to make a marginal contribution in this research field.To achieve a better life,a stable wage income is necessary,besides,return on investment can also play an important role.In-depth research on household risk asset selection behavior can provide help to improve family living welfare,provide reference for relevant government policy formulation,and provide new ideas and theoretical analysis for financial market product and service innovation.Refer to the existing theoretical framework and research results,using micro-data from the 2013 China Household Finance Survey to explore the relationship between religious preference and household risk asset selection.The research results show that families with religious beliefs are more likely to choose to invest in risky assets,and at the same time,the proportion of family assets allocated to risky assets increases.The standard deviation of asset portfolios built by families with religious beliefs has increased significantly,that is,families with religious beliefs have choose more risk asset portfolios with greater probability and be willing to bear higher investment risks.What's more,their investment risk assets are more diversified,in line with the principle of household assets diversification investment.In addition,different religious belief types have different impacts on family risk asset investment behavior.Specifically,when the head of household believes in Buddhism,the probability of family investing in risk assets,the proportion of assets,and the standard deviation of the asset portfolio chosen by the family will significantly increase.When the head of household believes in Christian,the standard deviation of household asset portfolios significantly increased.The heads of households whose religion are Buddhism,Christian,and Islam,show risk acceptance levels 1.466,1.423 and 1.519,respectively.From the perspective of risk acceptance,the heads of Moslem beliefs are the highest,followed by Buddhist and Christian.It can be seen that the financial market investment behavior of families with religious beliefs cannot be predicted simply from the degree of risk acceptance.The analysis of the mediating effect shows that when the size of the family population is fixed,the higher the head with religious beliefs value the family,the higher the probability that the family invests in risk assets and the standard deviation of asset portfolio,and the portfolio diversification also increased.The possible reason is that there is a certain relationship between the family members' religious beliefs and the family's emotional connection.This relationship improves family cohesion,enables family members to more actively face the uncertainty and risks of financial markets,and increases the family's awareness and acceptance of risk assets,thereby increasing the possibility of investing in risk assets and the proportion of asset allocation.These conclusions prompt us to think more deeply about the relationship between religious belief and family investment behavior,and the deeper relationship between religious belief and risk acceptance when studying household asset selection during the economic transition.The more religious household heads are influenced by Confucian traditional culture,the lower the proportion and probability of risky assets in allocation,the lower the standard deviation of asset portfolio and the lower the diversification of asset portfolioThis article will help people deepen their understanding of the impact and the role of religious beliefs in modern economy and society,as well as deepen the understanding of households' investment behavior in risk assets.Fully understanding the influencing factors and mechanisms of household asset allocation behavior will help maintain and increase the value of household wealth and improve the living welfare of residents.It will help the healthy development of economy and finance,and it is in line with the country's policy direction of vigorously developing direct financing,especially equity financing.It will help financial institutions deepen their understanding of investor behavior,understand the economic,social,and cultural background of customers,innovate financial products and services,and improve market competitiveness.