Parent-child Altruism And Risky Financial Asset Allocation Of Rural Families

The economic development of Chinese rural area is a key issue that Chinese Communist Party and government are highly concerned about.To increase farmers' property income has been explicitly proposed in the 13th Five-Year Plan.In October 2017,in the report of the Party's Nineteenth Congress,President Xi Jinping has once again emphasized and proposed a strategy for rural revitalization.With a series of policy incentives,rural residents' income has increased significantly in recent years.According to the data of the China Statistical Yearbook 2011-2016,the per capita disposable income of rural households has been increasing year by year,with a cumulative growth rate of 44.31%,reflecting the big room for the objective investment-consumption need of rural residents.However,due to various factors,rural households have a single and inefficient allocation of risk assets.From previous studies,there is relatively little research on the selection of risk financial assets in rural households.Actually,rural residents' risky financial asset selection has strong irrational behavior.At present,the research on the impact of irrational behavior on the choice of risk financial assets in rural households and the relevant mechanisms is very limited.In economics,parental altruism is considered as one of the irrational economic behaviors.Therefore,from the perspective of parent-child altruism,this paper analyzes the influence and mechanism of risk financial asset choices in rural households.This article takes the rural family as the research object to study the effect and mechanism of parental altruism and rural family risk financial asset selection.The main methods and contents are as follows:(1)Use the literature research method,through reading and sorting out the existing literature data,and put forward research hypotheses on the basis of the analysis of behavioral finance theory,asset portfolio theory,kinship and altruism theory.(2)Use deductive methods to infer the influence mechanism of parental altruism that promotes the selection of rural households' risky financial assets.(3)Based on the data from the 2016 China Family Tracking Survey with the statistical analyses of rural household demographic characteristics,family characteristics and regional economic conditions,the basic situation of household risk financial asset selection is formed.(4)Through the empirical analysis,Probit and Tobit models are used to empirically analyze sample parental altruism and rural household risk financial asset selection,and conclusions are reached.(5)Using instrumental variables with IV-Probit and IV-Tobit models,taking government's public subsidies in education and health as instrumental variables,the impact of sample parental altruism on rural household risky financial asset selections is conducted by Biochemical test.(6)Using induction,according to the theoretical analysis,status statistics and empirical analysis,conclusions are reached and countermeasures are proposed.Through theoretical and empirical research,the following main conclusions have been obtained:(1)The weakening of parental and altruistic tendencies will increase the likelihood of participating in stocks and risky financial markets.(2)The weakening of parent-child altruism will increase the proportion of stocks and risky financial assets in total financial assets.(3)There is a significant positive correlation between the age of household residents and the risk of financial asset selection.However,the“bell type" feature seen in the current status analysis is not obvious.Among them,household residents with an age range of 41-50 years are more inclined to Investing in stocks and risky financial assets;income factors play an important role in the family.Throughout the entire life cycle,the increase in residents' income can promote families 'investment in risky financial assets;the level of education cana affect residents' risky investment decisions.Among them,the performance of the group,especially from university to doctoral degree,is more pronounced;the total financial assets and net assets of families in the eastern region of China are circa one time bigger than that of the rural households in the central and western regions,and household financial assets in the same region are concentrated in the hands of a few people,resulting in serious polarization.Based on the above research conclusions,this paper proposes countermeasures and recommendations from three levels:family,financial institutions and government,in order to provide a valuable reference for effectively improving rural residents' asset income,advancing the rational development of the financial market and promoting the strategy of rural rejuvenation.