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| Risk Attitudes, Financial Education and Household Financial Portfolio Choice |
| HU Zhen1,ZANG Rihong2 |
1. China Agricultural University
2.
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Abstract Using the data of China Survey of Consumer Finances, we explore the effects of risk attitudes and financial education on the allocation of household financial assets and family participation in financial markets. The result shows that risk attitude significantly effects the degree of dispersion of the household financial assets portfolio，the higher the degree of risk aversion, the lower the degree of dispersion of financial assets portfolio. The risk attitude has a significant effect on the family participation in formal financial markets. A higher level of risk aversion will significantly reduce the family participation in stocks, funds, bonds and saving insurance market, which means that one unit higher of risk aversion, the possibility of family participating in the stock market will decrease by 10.5%. The degree of risk aversion has a significant negative effect on the share of stocks, funds, bonds and saving insurance assets in household financial assets. The effects of financial education investment on the proportion of risky assets show a rising trend first and then decrease, with the quintile of middle greater than the ends. The corresponding policy implication of this paper is that government and financial authorities need widespread financial education，improve the residents’ cognitive level of financial risk，and thus optimizing household financial assets allocation and improving residents financial benefits.
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Received: 29 February 2016
Published: 15 August 2016
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Corresponding Authors:
ZANG Rihong
E-mail: rihong@cau.edu.cn
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2016, Vol. 
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