Abstract
As an important part of culture, religion can influence people’s attitude about worth and wealth, thus their economical behavior and financial decisions. Based on CGSS2010 data, this paper analyzes the relationship between religion and people’s choice of financial assets. The empirical results of this paper show that, those who believe in religion are more willing to hold risk assets than those who do not believe in religion, including the stocks and funds, bonds, etc.
Highlights
Since the 1990s, China’s capital market has developed maturely, accompanied by financial globalization and the emergence of a wave of financial product innovation, as well as an increase in per capita income; people are in dire need to administrate finance
The empirical results of this paper show that, those who believe in religion are more willing to hold risk assets than those who do not believe in religion, including the stocks and funds, bonds, etc
According to the answers of the interviewed for the question “Are you currently engaged in the following investment activities”, if one is to invest stocks, the stock holdings value will be of 1, otherwise 0; if one is in possession of one or more such risky assets, the level of risk assets held value is for 1, and otherwise 0
Summary
Since the 1990s, China’s capital market has developed maturely, accompanied by financial globalization and the emergence of a wave of financial product innovation, as well as an increase in per capita income; people are in dire need to administrate finance. The allocation of residents’ financial asset has increasingly diversified, with the stocks, funds, bonds, insurance and financial derivatives and other financial products gradually accepted by the people. In this context, it is of great significance to study the factors that give guidance for people to choose various financial assets. CGSS2010 serves as the more authoritative social survey data, a collection of religious beliefs of the interviewees, and of the risk assets of respondents stocks, funds, bonds, etc., and the detailed data such as their real estate holdings, insurance participation, education background, and demographic characteristics. The following chapters will be arranged as follows: in Section 2, the related literatures will be reviewed; in Section 3, the data and the variables are to be explored; in Section 4, the possible endogenous will be modeled; in Section 5, empirical analysis will be conducted; Section 6 concludes the paper
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