Research On Factors Influencing The Efficiency Of Household Portfolio

With the continuous and steady development of China's economy and society,household disposable income has been increasing,and the consumption level and quality of life have been improved.How to allocate family resources effectively has gradually become a hot social issue and has been widely concerned.On the one hand,the research on the efficiency of household portfolio can help citizens better receive financial education and learn relevant financial knowledge.And according to their own characteristics and needs,choose the appropriate investment tools,avoid investment risk effectively,rational allocation of risk investment and risk-free investment ratio,so as to achieve the preservation and appreciation of total household assets.On the other hand,financial institutions can design personalized financial products,innovate and develop business models,optimize service level,meet the increasing investment needs of the people,and then achieve steady growth of enterprises.As the basic cells in the economic system,the family will have an impact on the overall economy through consumption,investment,wealth effect and other aspects.The rational allocation of household assets will help the surplus funds flow to enterprises faster and better,stimulate the vitality of the capital market and promote economic prosperity and development.Current research results show that family wealth,social capital,registered permanent residence,location,IQ,marital status,education level,risk appetite and financial literacy have an impact on the efficiency of household portfolio.Based on previous studies,this paper innovatively selected family social status,family depression,household head's verbal ability,mathematical ability,sleep time,family life satisfaction and career reputation as the factors affecting the efficiency of household portfolio.Using data from the Peking University's China Family Panel Studies(CFPS),this paper constructs the efficiency variable of household portfolio measured by sharpe ratio.The sharpe ratio of different household portfolios was calculated by using the CFPS sample household asset allocation status and the risk and return of various assets.Tobit,a review regression model,was adopted for empirical analysis,and the following conclusions were drawn: households with high net worth,high per capita annual income,large family size,high social status and good health had higher portfolio sharpe ratio.Married households with older,more educated,better verbal skills,later bedtimes and higher life satisfaction had higher sharpe ratios.Different from previous studies,this study finds that the efficiency of household portfolio is related to family social status and family life satisfaction,but not related to the mental health of family members and the professional reputation of the head of the household.In the influence mechanism of cognitive ability on the efficiency of household portfolio,verbal ability has a significant influence,while mathematical ability has no significant influence.In particular,the efficiency of household portfolio was found to be highly correlated with when the head of household started sleeping.In order to improve the efficiency of China's household portfolio,the following Suggestions are put forward by referring to the influential factors that can be improved in the research conclusions: The government should take corresponding measures to continuously and steadily develop the economy and enhance the level of national wealth;Improve the medical security system,reduce the burden of national medical care,improve the level of national health;To strengthen the popularization of higher education and improve the educational level of the people;Strengthen national financial education,improve national financial literacy,guide rational investment.In order to achieve more effective national financial education in the future,special attention should be paid to language competence education in the basic education stage.The contribution of this paper is to make the research on factors influencing the efficiency of household portfolio involve the fields of social status,mental health,cognitive ability,living habits,subjective feelings and professional reputation.