The Impact Of Background Risks On Chinese Urban Household Financial Assets Allocation

With the development of economy and the increase of household disposable income,household financial investment is becoming more and more frequent and the demand for household asset allocation is becoming more and more prominent.However,unlike corporate finance,household financial behavior is affected not only by assets' risks and returns,but also by more non-market factors.Background risk is one of the important aspects.Background risk usually refers to the risk that comes from the background assets and is difficult to disperse through the portfolio,such as household income situation,health status and real estate investment situation.In order to explore the impact of background risk on household financial asset allocation,this paper uses the data of household consumption finance survey of urban residents in China,chooses household income level,health status and real estate investment situation as representative factors,and uses Probit and Tobit models to make empirical analysis.The results show that background risk has a certain impact on the allocation of financial assets in Chinese urban families.With the decrease of household income level,the possibility of participation in risk financial markets and the proportion of holding risk financial assets are significantly decreased;health status has no significant impact on the allocation of household financial assets;owning real estate has significant positive impact on participation possibility and holding proportion of risky financial asset,but among the household which have their own house,with the increase of the proportion of real estate to total household assets,household risk financial investment behavior will be restrained.