Abstract
ABSTRACT Using data from the 2014 China Family Panel Studies survey (CFPS), we investigate the effects of financial planning ability and risk perception on household portfolio choice. Our findings show that households with greater financial planning ability are more likely to invest in financial markets and hold a larger proportion of risky financial assets. The empirical results suggest that a higher level of risk perception leads to more market participation and risky assets holding. Compared with the insignificant effect of financial literacy, we find that financial planning ability significantly affects household investment earnings, and high financial planning ability tends to contribute to a positive investment return.
Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
