Impact Of Income Structure On Household Financial Asset Allocation

With the rapid development of the economy,the family income continues to increase,prompting households to increase the demand for financial asset allocation,and family investment has shifted from singularity to diversification.Reasonable financial asset allocation is important for families.On the one hand,it can effectively control the risk of household financial assets.On the other hand,it can also meet the family's pursuit of maximizing income and optimize the allocation of financial assets.This article studies the impact of income structure on household financial asset allocation and the effectiveness of financial asset allocation,which can enrich family finance theory,and can also guide families to optimize income structure and improve the effectiveness of financial asset allocation.This article first uses macro data of China 's household income and household financial asset allocation from the National Bureau of statistics and China Statistical Yearbook,and concludes that household income structure in China is dominated by wage income;the financial assets that households have the most are deposits,and risk assets such as stocks and funds The configuration has increased year by year.Second,referring to the stock investment model of Cao et al.(2005),the wage income in the income structure is introduced into the model as a variable to analyze the behavior mechanism of the impact of wage income on stock investment in financial asset allocation.It is concluded that with the increase of wage income,the probability and depth of stock participation will increase.Macro and theoretical analysis paved the way for empirical research.Next,the2016 CFPS household micro survey data was used,focusing on empirical research on income structure,household asset allocation,and effectiveness of financial asset allocation.It is concluded that: First,the four types of income structure have a positive impact on the allocation of household financial assets,and the impact of different types of income on the allocation of financial assets is heterogeneous.The impacts from large to small are: property income,operating income,wages.Theincome of property income,operating income and transfer income is significant,while the effect of transfer income is not significant.Secondly,four types of income also have a positive impact on the effectiveness of family financial assets,but different income types have different impact on it,and the magnitude and significance of the impact are consistent with the impact on the allocation of financial assets.In summary,some suggestions are drawn: family investors should increase their sources of income,actively learn financial knowledge,moderately participate in the financial market,avoid extreme losses,and make investment decisions suitable for their own situations;on the one hand,the government should improve the income redistribution policy,optimize the income structure,launch active employment policies,and expand the channels of family income;on the other hand,it should strengthen the construction of financial market system and make overall planning Regional coordinated development;financial service institutions should provide financial support for families,improve the quality of financial services,innovate financial products,and provide more investment channels;financial regulators should establish a multi-level regulatory system,crack down on acts that disrupt normal transactions in the financial market,and standardize the market code of conduct,so as to improve the efficiency of family investment.