Research On The Influence Of Ambiguity Aversion And Financial Literacy On Urban Household Financial Asset Allocation

In recent years,with the development of Chinese economy and the improvement of national income,the financial market has gradually matured and the types of financial products have been increasing.Bank deposits,a traditional family-funded investment method,are difficult to meet the national demand for better and better financial services.Therefore,in modern family life,the study of the allocation of financial assets and its influencing factors can help to understand the actual needs of the family and promote the healthy and stable development of the social economy.Ambiguity aversion refers to most people will choose the circumstances known probability event,rather than the probability of unknown circumstances in decision-making.Ambiguity aversion as investors' subjective preferences have a significant impact on their financial assets to carry out investment.As an important indicator reflecting residents' financial ability and participating in financial activities,financial literacy is of great significance to us to understand the overall financial level of the people.Research ambiguity aversion,financial literacy and configuration of urban households financial assets,the purpose is to analyze the influence of subjective factors in the process of financial asset allocation,improve the effectiveness of family financial asset allocation,and promote the development of financial industry.This paper first analyzes the research status of ambiguity aversion,aversion,financial literacy and family financial asset allocation at home and abroad.According to the investigation ambiguity aversion,financial literacy and family financial asset allocation in Xi'an,Shaanxi Province.Using the measures of two core indicators of ambiguity aversion and financial literacy,the 305 data obtained were analyzed.The matching probability is used as the intermediate variable to measure the degree of ambiguity aversion of residents.The factor analysis method is used to measure the urban residents' financial literacy index.The results show that the proportion of ambiguity aversive groups among urban residents in Xi'an is 54.1%,the average degree of ambiguity aversion is 39%,and residents generally low level of financial literacy,large individual differences.Using Probit regression model to analyze the impact of ambiguity aversion and financial literacy on family stock market participation and risk financial investment participation.Multiple linear regression was used to analyze the effects of ambiguity aversion and financial literacy on total financial assets of households.The main research conclusions include that investors with high degree of vague aversion have low participation in the stock market and low participation in risky financial markets,households with high financial literacy levels have higher participation in stocks and risky financial markets,and the total amount of family financial assets was negatively correlated with vague aversion and positively correlated with financial literacy level.Finally,based on the conclusions of empirical analysis,this paper proposes several suggestions to government departments and family finance leaders: government departments should strengthen financial universal education and improve the financial literacy level of residents,accelerate the construction of a modern financial market system,increase supervision,reduce the occurrence of information asymmetry,further improve the income level of residents,and make asset allocation more reasonable.Urban residents should actively participate in financial knowledge learning and establish a diversified investment awareness.