| With the rapid development of China's economy,people's income is constantly improving.While meeting the needs of basic daily consumption,more and more investors invest by purchasing financial products.But compared with developed countries,due to various financial institutions in China for shorter product development,technology is not mature,so also raises many questions:most of the design of the products are simply the pursuit of higher yields and hide behind the huge risk.Investors often have no such risk identification ability,lacking the consciousness of risk management and too overestimate their own can bear the risk of losses,which brings huge hidden trouble.Therefore,it is imperative to study whether small and medium-sized investors have risk preference and analyze the influencing factors hidden behind it that as to design corresponding financial products to satisfy individual utility maximization.Through to the related literature at home and abroad,based on risk preference theory,behavioral finance theory,portfolio theory and so on the basis of the three theories to study the irrationality of the existence of Chongqing in the process of the medium and small investors to invest assets ratio and the corresponding risk appetite and its existence through analyzing the influence factors of risk appetite and relevant conclusions.The risk preference and its influencing factors of the Chongqing's small and medium investors are investigated by means of questionnaire.The questionnaire is divided into online survey and field interview.According to the description and analysis of 524 valid questionnaires received,the basic characteristics of small and medium investors in Chongqing can be seen,such as low risk awareness,poor risk management awareness and overestimation of their own risk loss degree.Then this paper analyzes the existence of risk preference from three aspects:the self-evaluation of investment style,the risk preference of asset allocation and the willingness to exchange high risk for high yield.Through the studying and comparison of other literatures and actual situation in Chongqing,this paper indicated that the risk management awareness of small and medium-sized investors,the degree of risk losses and the life cycle of individuals are the main reasons for the risk preference.On the basis of empirical analysis,this paper selects Logistic regression model to analyze the influencing factors of risk preference.Through the research,the following conclusions are drawn:(1)The age of small and medium investors in Chongqing is mainly distributed in the growth period and the stable period of adults.Their education is concentrated in the university undergraduate degree,mainly by the enterprise office worker and the health condition is good.(2)Most of the small and medium-sized investors in Chongqing consider themselves as risk takers like to hold one or two investment objects in heavy position and are willing to bear high risks for the sake of high returns.(3)There is a negative correlation between risk preference and risk management awareness,risk awareness and life cycle of investors.So there is a positive correlation between risk tolerance and risk appetite.In the end,this paper puts forward some views on the individual investors' own situation,the policy reform of government regulation and the relevant measures of financial institutions:(1)Small and medium-sized investors should improve their risk awareness,enhance their risk management awareness and understand the characteristics of financial products and control their objective situation;(2)Deepen the reform of the economic system,increase the number of investable financial instruments,promote diversification of investors' risk investment and actively carry out risk management education for small and medium-sized investors;(3)Financial institutions should correctly handle the relationship with customers and should establish a full and effective information disclosure system and risk disclosure system. |
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