The Impact Of Asset Size And Financial Literacy On Urban Household Risky Financial Asset Investment

In recent years,China’s economy has developed rapidly in the process of market-oriented reform.The scale of household assets of residents is growing,and the demand of residents for the maintenance and appreciation of assets is also increasing.In the current domestic environment,one side is the continuous increase in the disposable income of residents,and the other side is the continuous implementation of policies such as the non-speculation of housing and housing,the construction of the third pillar of old-age care,and so on.People are no longer satisfied with investing in single,low-income financial products,but due to the restrictions of asset size,financial literacy and other factors,the degree of family participation in risky financial assets investment is still low.Family total assets are the source of funds for family investment.The size of the assets largely limits the investment direction of residents.At the same time,financial literacy,as an important indicator reflecting the level of residents’ financial knowledge and understanding of the financial market,also has a significant impact on family participation in risky financial asset investment.Therefore,explore the impact of asset size and financial literacy on family risky financial asset investment,It is of great significance to maintain and increase the value of household assets,expand the scale of the financial market and promote the development of the real economy.Firstly,the existing research at home and abroad is sorted out,and the research hypothesis is put forward on the basis of the existing research and current situation analysis.According to the field survey conducted in Xi’an,Shaanxi Province,the 486 questionnaire data obtained are sorted and analyzed,and the asset scale,financial literacy and the current situation of risky financial asset investment of urban residents in Xi’an are sorted and analyzed.Then the financial literacy index is established by factor analysis.In the empirical research part,the article uses Probit model and Tobit model to explore the impact of asset size and financial literacy on the participation of households in risky financial asset investment and the depth of investment,and analyzes the heterogeneity of the impact of family investment decision makers on risky financial asset investment for families with different gender,age and education levels.The empirical results show that the scale of family assets,financial literacy and their multiplier items have significant positive effects on family risky financial asset investment.Further heterogeneity analysis results show that asset size has the greatest impact on the possibility and investment depth of middle-aged families participating in risky financial markets,financial literacy has the greatest impact on the possibility of elderly families participating in risky financial assets investment,and the greatest impact on the investment depth of young families’ risky financial assets.At the same time,with the improvement of education level,the impact of financial literacy on the participation of urban households in risky financial markets and the investment depth of risky financial assets has gradually increased,while the impact of asset size on the participation of urban households in risky financial markets has gradually decreased,and there is no significant difference in the impact on the investment depth of risky financial assets.In terms of gender differences,the impact of asset size on the possibility and depth of participation in risky financial assets investment of families with female investment decision-makers is higher than that of men,but the impact of financial literacy on the possibility and depth of participation in risky financial assets investment of families with male investment decision-makers is higher than that of women.Finally,based on the results of empirical analysis,this paper puts forward three suggestions for the government: improve the income growth mechanism and increase the size of household assets;Strengthen financial education and improve financial literacy level;Promote and improve the risk assessment mechanism and financial supervision mechanism of financial institutions.