Household Financial Assets Research Articles

Borrowing potential of households in modern Russia

Subject. This article discusses the issues related to the borrowing potential of households in modern Russia. Objectives. The article aims to determine the relationship between the borrowing potential of households and the cash flow in the Russian economy. Methods. For the study, I used analysis and synthesis, special economic and mathematical methods, in particular, and correlation and regression analysis, and neural network, and cluster analyses. Results. The article finds that the changes in household financial assets are largely due to the volume of investments in shares and stocks of resident investment funds, as well as in short-term debt securities of residents. Conclusions. The revealed relationship between the borrowing potential of households and the cash flow in the Russian economy indicates the maximum values of the money supply and broad money supply that allow the borrowing potential of households to be realized in modern Russia.

Research on the impact of digital financial development on the allocation of household financial assets in my country

With the rapid development of digital technology, digital finance is gradually changing the way Chinese households allocate their financial assets. This paper, entitled "A Study on the Impact of Digital Finance Development on the Allocation of Chinese Household Financial Assets", conducts an in-depth discussion on the impact of digital finance on the allocation of household financial assets from the perspectives of theoretical analysis and literature review. First, by sorting out the definition and classification of digital finance, this paper summarizes the current status of digital finance development at home and abroad and its potential impact on residents' financial behavior. Second, based on behavioral finance and information asymmetry theory, this paper analyzes how digital finance affects residents' financial asset allocation decisions by improving information acquisition efficiency, reducing transaction costs, and providing diversified financial products. The study found that the development of digital finance helps residents to obtain financial information more conveniently, lower investment thresholds, and increase the availability of financial products, thereby prompting residents to diversify their asset allocation. However, the development of digital finance also brings new risks and challenges, such as information security issues and financial fraud risks, which require the government, financial institutions, and residents to jointly respond. Finally, this paper puts forward policy recommendations to promote the healthy development of digital finance, including improving the regulatory system, improving residents' financial literacy, and promoting technological innovation in financial institutions. Through these measures, digital finance can better play a positive role in optimizing the allocation of residents' household financial assets and promote the healthy development of the financial market.

Confucian culture and household financial asset allocation: Based on a biomechanical mechanism perspective

In the context of household financial decisions, the biomechanical mechanism mainly refers to a series of principles in which the internal physiological processes of the body are interrelated with psychological cognition and influence the decision-making results when individuals make financial decisions. From the perspective of neurobiology, Confucian culture can influence the allocation behavior of household financial assets through the neural mechanisms in multiple regions of the brain, mainly including the prefrontal cortex, amygdala, and cingulate gyrus. From the perspective of the neuroendocrine system, the secretion levels of stress hormones such as cortisol are also closely related to household financial decisions. Stress responses, by influencing psychological cognition and neural mechanisms, have become one of the important biomechanical factors affecting financial decision-making behaviors. Confucian culture has profoundly influenced individuals’ choices in the allocation of household financial assets by affecting the triggering and cognitive assessment of stress responses, the neuroendocrine regulation related to stress responses, and exerting long-term impacts and intergenerational inheritance on stress responses, resulting in characteristics such as high savings and low participation in risky assets in the allocation of household financial assets. To verify the impact of Confucian culture on the allocation of household financial assets, this study constructs the Confucian culture variable by using the iterative principal factor method, constructs Probit and Tobit models, and conducts empirical analysis using the China Household Finance Survey data (CHFS). The study finds that Confucian culture can significantly promote savings, suppress the breadth and depth of households’ participation in the financial market, and lead to a more simplified allocation of financial assets. Heterogeneity analysis shows that its impact on elderly and low-income households is more significant. This study provides insights into the cultural and biological roots behind household financial asset allocation, offering new perspectives to explain how Confucian culture shapes financial behavior through biomechanical pathways. Future research can utilize neuroscience and genetic technologies to analyze the micro-genetic, neural regulation, and molecular connections between culture and biology in the influence of Confucian culture on financial decisions from the dimensions such as the integration of molecular genetics and cultural neuroscience, the exploration of gene-culture co-evolution, and the construction of gene expression network models, so as to contribute to the research in cultural economics.

Financial assets and mental health over time

Financial, material, and social assets are core drivers of access to salutary resources. However, there is a paucity of research about how non-income financial assets shape mental health. We explore the relation of financial assets with symptoms of depression and of anxiety using a nationally representative, longitudinal survey of U.S. adults fielded annually from 2020 to 2023 (n = 1,296 unique participants). We used multivariable logistic regression models to estimate the association of financial assets and financial stress separately and together with symptoms of depression (PHQ-9 > 9), anxiety (GAD-7 > 9), and their co-occurrence, controlling for demographic indicators and year fixed effects. We found, first, that adults with <$5,000 in accrued financial assets reported over two times the odds of positive screen for depression, anxiety, and co-occurring depression and anxiety, respectively, as adults with ≥$100,000 in financial assets. Second, when controlling for accrued financial assets, annual household income was not associated with symptoms of anxiety. Third, the gap in positive screen for depression between household financial assets groups stayed consistent and did not differ significantly over the study period. Annual income alone does not capture the influence of all financial assets on mental health.

Анализ показателей российского финансового рынка

The financial market is a key factor in economic development, an important tool for the redistribution and transformation of investment resources, as well as a litmus test of the state's economic health. The peculiarity of the Russian financial market is its "youth" and "inexperience" in comparison with the markets of developed economies, the path of trial and error, inconsistency in the context of the uniqueness of the financial system of the Russian Federation. This market is particularly vulnerable and volatile in the face of sanctions and global economic turmoil, so it needs competent targeting guidance, effective tools and verified coordination methods and techniques. The fundamental problems of the Russian financial market are quite deep and do not always appear on the surface, which requires an in-depth and permanent tactical and strategic analysis of factors, causes, trends, trends and indicators that can correct the situation in a timely manner in any economic scenario in manual management. The article examines the main features, rallies, features and directions of the development of the financial market of the Russian Federation at the present stage. The analysis of the issuer's statements for 2005–2023, dividend payments for the same period is presented, the dynamics of growth of the segment of mutual funds and exchange-traded mutual funds is considered. A comparative structure of household financial assets in 2017 and 2023 is proposed, the share of different organizational and legal forms of joint-stock companies in the total number of joint-stock companies in 2019–2023, the share of different groups of banks in the value of assets of the Russian banking system in 2000–2023 is given. The final results of the study substantiate the importance of the role of the state as a regulator of the stock market, emphasize its Russian functions, and highlight its conceptual problems. The research is based on the analysis of foreign and Russian publications, as well as on statistical conclusions of financial and statistical data.

Digital Financial Inclusion and Diversity of Household Financial Asset Allocation: Evidence From China

ABSTRACTUsing panel data from the China Household Finance Survey (CHFS) and the Digital Financial Inclusion Index (DFII) of Peking University, this paper investigates the impacts of DFI development on household financial asset allocation. The results show that DFI development significantly increases the diversity of household financial assets and enhances the breadth and depth of household participation in the investment of stocks, funds, and internet finance products. These effects remain robust to various tests, including the use of instrumental variables, reconstructing the dependent variable, and adopting different regression models. Specifically, DFI increases household asset diversity through two main channels: improving financial literacy and alleviating liquidity constraints. Additionally, the heterogeneity analyses indicate that the promotive effect of DFI is stronger for households with younger heads, higher risk aversion, and greater income uncertainty or those located in rural areas. This research underscores the importance of digital financial inclusion in fostering a more diverse asset allocation landscape in China, with potential implications for other economies as well..

Digital financial inclusion and household financial vulnerability: An empirical analysis of rural and urban disparities in China

In recent times, a notable increase in the leverage ratios among numerous households across China has been witnessed, culminating in heightened household financial vulnerability. Concurrently, the sphere of digital inclusive finance has witnessed rapid advancement, establishing itself as a crucial mechanism for Chinese households to counteract financial risk shocks. This research article meticulously constructs an ordered regression model, anchored in micro-level data from household surveys, to delve into the influence and operative mechanisms of digital inclusive finance on the vulnerability of household finances. Empirical findings from this study robustly indicate that the evolution of digital inclusive finance significantly mitigates the household financial vulnerability. A thorough mechanism analysis reveals that digital inclusive finance primarily curtails household financial vulnerability through several avenues: it notably enhances financial literacy, augments the income derived from household financial assets, and elevates contributions to commercial insurance. Intriguingly, a heterogeneity analysis underscores that the impact of digital inclusive finance is more pronounced in reducing financial vulnerability amongst households registered in rural areas and those with lower income levels. This article contributes to the expansion of the theoretical framework concerning household financial vulnerability, offering insightful guidance and policy implications for addressing financial vulnerability concerns and forestalling macro-financial risks.

Digital Financial Literacy and Rural Income Inequality

Digital finance plays a crucial role in enhancing financial inclusion and decreasing income inequality within developing countries. Given the digital and financial attributes that characterize digital finance, digital financial literacy (DFL) is a critical factor that influences the extent to which this function can be exploited. There is relatively little empirical evidence linking DFL to rural income inequality. Based on the 2017 and 2019 China Household Finance Survey data and two-way fixed effect panel model, this study focuses on rural China and examines the effect of DFL on income inequality. Meanwhile, this study also explores the mechanism of this effect from the perspectives of financial asset allocation and entrepreneurship. The empirical results show that (1) increasing DFL within rural households contributes to decreasing income inequality; (2) DFL can decrease income inequality by enriching the variety of household financial assets and enlarging the proportion of risky financial assets in rural households; and (3) improving DFL can ameliorate rural income inequality by increasing the probability of entrepreneurship. The study’s findings put forward fresh empirical evidence for understanding the relationship and mechanism that exist between DFL and income inequality, and more significantly, provide new suggestions for designing and enhancing financial policies that aim to decrease income inequality in developing countries.

Research on the Effect of Financial Asset Allocation on Household Consumption:Based on the Perspective of Wealth Effect

Based on the perspective of wealth effect, this paper uses the data of China Household Finance Survey to explore the effect of household financial asset allocation on consumption.This paper found that there is a wealth effect between household financial asset allocation and consumption,that is,household financial assets have an impact on consumption through the change of holding level.And when we used the instrumental variable to deal with the endogenous problem of variables, the above conclusion is still valid.Similarly,After replacing the empirical model and database,the empirical results are also robust and significant.This paper is of great significance to promote households to allocate more financial assets and release consumption vitality.

How Does Fertility Policy Relaxation Affect Household Financial Asset Allocation? Evidence from the Universal Two-Child Policy in China

Both fertility policy and the healthy development of financial markets are important topics for sustainable economic and social development. By using the difference-in-difference (DID) model, this paper investigates how the universal two-child policy (UTCP) in China aiming to improve fertility affects household financial asset allocation, based on the China Family Panel Studies (CFPS) data from 2010 to 2018. The results show that the implementation of UTCP has a significant negative impact on household risk asset holdings. Specifically, the policy decreases the probability of households participating in the financial market by 3.1 percentage points, reduces the total value of risk assets held by 50.2%, and lowers the proportion of risk asset investment by 1.76 percentage points. Mechanism analysis suggests that the implementation of the policy has a significantly negative impact on labor market outcomes for women, which decreases household income and increases the time and effort spent on caring for children. As a result, the financial resources available for household financial asset investment are diminished, and the time for activities such as information gathering and financial asset transactions is squeezed out, ultimately leading to a decrease in household risk asset investment. Heterogeneity analysis reveals that households with self-employed wives (higher income instability), households without a co-resident status with grandparents (more time spent on childcare), and high-income households (stronger willingness to have more children) are more affected by the policy. This study provides new supplements on how fertility policies affect the allocation of household financial assets and proposes constructive suggestions on how to establish a comprehensive system of childcare welfare and alleviate the economic pressure of family childcare in developing countries.

The Impact of Supplementary Pension on Household Risky Financial Asset Allocation

With increasingly serious aging problem in China, supplementary pension, as the second pillar of the endowment insurance system, is expected to play an important role to relieve the pension pressure. Nowadays, people in China are exposed to various investment tools, but they still prefer to invest in risk-free financial assets. The allocation of household financial assets is not diversified enough. While supplementary pension is expected to improve financial structure of households. It may enhance the anti-risk ability of households, rational allocation of household assets, the ability of value-adding, and thus reduce the pressure of society to cope with the aging population. This paper selects the 2019 China Household Finance Survey (CHFS) database, using STATA software to investigate the impact of supplementary pension on risky financial asset allocation of Chinese households by applying probit and tobit models. The results show that supplementary pension can significantly increase the willingness of households to purchase risky financial products but has no significant effect on increasing the proportion of risky assets being held.

Research on the Mechanism of Improving the Quality of Chinese Residents' Household Financial Asset Allocation

In recent years, China's economy is in the transition stage from high speed growth to high quality development, and the report of the 20th Party Congress puts forward the new concept of "high quality development of finance", while the family, as an important member of China's financial market, will be conducive to the high quality of China's social and financial development by improving the quality of its financial asset allocation. Financial inclusion is intended to create a fair and efficient financial market, which plays a positive role in optimizing the allocation of family financial assets. With the continuous updating of financial technology and financial services, inclusive finance can be developed rapidly, this project will use China's CHFS data to conduct empirical tests, use hierarchical analysis to define indicators from the fairness and efficiency dimensions to construct the Tobit model as well as the advanced model to analyze the enhancement mechanism of China's residents' household financial asset allocation, in order to provide some theoretical thinking for the unfair and inefficient allocation of household financial assets at present.

Impact Of Stock Market Volatility on Household Financial Assets

Impact Of Stock Market Volatility on Household Financial Assets

Establishing a public option for asset management in the United States

Asset managers – financial institutions like BlackRock, State Street, and Vanguard – manage trillions of dollars of US household financial assets, including public pension funds at the federal, state, and municipal level. The structural power of asset managers means they play a decisive role in corporate decision-making, while the conflicts of interest inherent in their business model and a short-term interpretation of their fiduciary duties means they do not serve the actual interests of their economic beneficiaries in a sustainable economy. I propose establishing a public asset manager in the United States to serve as the asset manager for public pension funds. This article situates this proposed institutional reform in the broader evolution of asset manager capitalism and explains how establishing a public asset manager is an institutional reform that would shift the financial system toward serving the actual interests of the people and social systems on which it depends.

The importance of women's roles in adaptive capacity and resilience to flooding in rural Bangladesh

The importance of women's roles in adaptive capacity and resilience to flooding in rural Bangladesh

A Study on the Impact of Education Level on Household Financial Assets Investment Behavior

Based on the data of Chinese Household Income Project Survey (CHIP), this paper comprehensively examines the impact of education level on the investment behavior of four types of household financial assets, namely, savings assets, bond assets, fund assets and stock assets, through Logit and Tobit models. The results show that: (1) the higher education level of the head of households, the smaller the possibility of participating in bond assets investment; the higher education level of the head of households are more likely to participate in savings assets, fund assets and stock assets investment, and have greater impact on the holding proportion of savings assets, fund assets and stock assets. ( 2)The head of households with secondary education level are more likely to participate in bond assets investment, and have a greater impact on the holding proportion of bond assets; The head of households with high education level are more likely to participate in stock assets investment, and have a greater impact on the holding proportion of stock assets. (3) Residents' subjective well-being, physical health, household disposable income, household living consumption expenditure, credit constraints and social trust also have significant impact on various types of household financial assets. The conclusion of the study has some implications for further optimizing the allocation of household financial assets.

Relationship Between Socioeconomic Conditions and Financial Fraud Victimization Among Older Adults in China: Do Financial Literacy and Financial Attitudes Matter?

Using data from the 2015 wave of the China Household Finance Survey (N ≈ 12,100), this study used structural equation modeling to examine the relationship between socioeconomic conditions (i.e., educational attainments, hukou status, and household financial assets per capita) and financial fraud victimization among Chinese older adults and the mediating roles of financial literacy and financial attitudes (i.e., interest in financial matters and risk tolerance). We found that although neither educational attainment nor hukou status was directly related to financial fraud victimization, household financial assets per capita was postively associated with the risk of financial fraud victimization. In addition, higher educational attainment, urban hukou, and more financial assets per capita were associated with more risk of financial fraud victimization through higher levels of financial literacy and higher interest in financial matters. Implications for preventing and protecting Chinese older adults from financial fraud victimization are discussed.

A bent line Tobit regression model with application to household financial assets

A bent line Tobit regression model with application to household financial assets

The Influence of Population Aging on Chinese Household Financial Risk

Based on the data of China's household finance survey in 2019 and Logit binary regression model, this paper discusses the influencing factors of population aging on household financial risk assets from the perspective of empirical analysis. It is found that the holding probability of family financial risk assets by aging population is related to the number of family population. With the increase of family population, it is instructive for the national government to actively guide family residents to allocate assets.

Housing Prices, Homeownership and Urban Household Financial Assets Investment: A Micro Level Study of China

Housing Prices, Homeownership and Urban Household Financial Assets Investment: A Micro Level Study of China