scholarly journals Analysis of asset risk and household Financial Asset Allocation structure—Empirical analysis from a nonlinear model

2021 ◽  
Vol 235 ◽  
pp. 01039
Author(s):  
Zhanbing Huang ◽  
Yu Lu
Keyword(s):  
Empirical Analysis ◽  
Asset Allocation ◽  
Financial Literacy ◽  
Family Income ◽  
Mutual Influence ◽  
Probit Model ◽  
Financial Asset ◽  
Household Asset ◽  
Asset Risk ◽  
Internal Relationship

Chinese households now have a good understanding of finance and their asset allocation choices are increasingly skewed towards financial products. At present, most domestic and foreign researches on the structure and choice of household asset allocation mainly analyze the influence of residents’ characteristics or financial literacy on household asset allocation, while few researches on the internal relationship between household risk, asset structure and allocation choice. Based on CHFS data and the theory of asset investment behavior, this paper systematically analyzes and risk assets and family financial asset allocation structure of mutual influence and role, an empirical analysis of the influencing factors of residents in our country family financial asset allocation structure by using Probit model and Tobit model, pay attention to risk assets, family income and other factors, a deeper understanding of family financial asset investment circumstances.

scholarly journals FACTORS AFFECTING FINANCIAL CONSUMERS’ PRIVATE PENSION PLAN DECISIONS: A LITERATURE REVIEW AND A CONCEPTUAL FRAMEWORK PROPOSAL

2016 ◽  
Vol 4 (2) ◽  
Author(s):  
Aslı Elif Aydın ◽  
Elif Akben Selçuk
Keyword(s):  
Asset Allocation ◽  
Financial Literacy ◽  
Pension Plan ◽  
Private Pension ◽  
Private Pensions ◽  
Factors Affecting ◽  
Private Pension Plan ◽  
Saving Decisions ◽  
Dispositional Factors ◽  
Allocation Decisions

The objective of this study is to propose a framework related to financial consumers’ private pension plan decisions. Specifically, we review the factors affecting consumers’ participation, contribution and asset allocation decisions regarding private pensions. The factors discussed include situational and dispositional factors, personality, motivation, financial literacy, and external influences. Based on this survey of literature, we develop a number of propositions, which are expected to benefit individual retirement planners and pension institutions in gaining a better understanding of retirement saving decisions.

Cutting Through the Fog: Financial Literacy and Financial Investment Choices

2020 ◽  
Author(s):  
Marco Nieddu ◽  
Lorenzo Pandolfi
Keyword(s):  
Financial Literacy ◽  
Ambiguity Aversion ◽  
Financial Education ◽  
Certainty Equivalent ◽  
Financial Asset ◽  
Negative Effects ◽  
Coin Toss ◽  
Financial Investment ◽  
Average Value ◽  
The Impact

Abstract This paper examines the impact of financial literacy on the individual propensity to invest in financial assets. In a laboratory experiment with a two-by-two design, we study how the certainty equivalent of a risky lottery changes when varying the lottery framing and the participants’ financial literacy level. We find that presenting the lottery as a financial asset—whose payoffs need to be computed from a given return rate—rather than as a simple coin toss reduces the average value participants assign to the lottery by approximately 20% and lowers their understanding of the lottery’s structure. Enhancing financial literacy by explaining the basic financial concepts involved in the description of the financial-asset lottery, offsets the negative effects of the financial framing: it improves respondents’ understanding of the lottery and increases the certainty equivalent. Our results—which can be rationalized by ambiguity aversion—shed new light on the linkages between financial literacy and financial investment behavior. Additionally, they highlight the importance of promoting financial education to stimulate households’ financial market participation.

scholarly journals The Success of Currency Reforms to End Great Inflations: An Empirical Analysis of 34 High Inflations

2009 ◽  
Vol 10 (2) ◽  
pp. 165-175 ◽  
Author(s):  
Peter Bernholz ◽  
Peter Kugler
Keyword(s):  
Twentieth Century ◽  
Exchange Rate ◽  
Central Bank ◽  
Empirical Analysis ◽  
Probit Model ◽  
Ordered Probit ◽  
Ordered Probit Model ◽  
Market Economies ◽  
Fixed Exchange Rate ◽  
Currency Reform

Abstract The estimation of an ordered probit model for currency reforms attempting to end 31 hyperinflations and three huge inflations of the twentieth century shows that the introduction of an independent central bank and the adoption of a credibly fixed exchange rate are crucial for the success of a currency reform. In addition, currency reforms are demonstrated to be more difficult in centrally planned economies than in market economies.

An Ising spin state explanation for financial asset allocation

2016 ◽  
Vol 445 ◽  
pp. 112-116 ◽  
Author(s):  
Philip A. Horvath ◽  
Kelly R. Roos ◽  
Amit Sinha
Keyword(s):  
Spin State ◽  
Asset Allocation ◽  
Financial Asset ◽  
Ising Spin

Financial Literacy Among Hong Kong’s Chinese Adolescents

2018 ◽  
Vol 52 (4) ◽  
pp. 548-573 ◽  
Author(s):  
Alex Yue Feng Zhu ◽  
Kee Lee Chou
Keyword(s):  
Hong Kong ◽  
Parental Stress ◽  
Financial Literacy ◽  
Family Income ◽  
Critical Role ◽  
Chinese Adolescents ◽  
Financial Behavior ◽  
Entry Points ◽  
The Government ◽  
Role Of Parents

Against today’s global backdrop where financial responsibility has been transferred from the government to individuals, financial literacy, as a key component of financial capacity, could be an effective strategy to escape from lifecourse poverty. Compared with young adults, research demonstrates that financial literacy among adolescents is of greater importance. The present study fills the theoretical gap to measure the financial literacy of Hong Kong Chinese adolescents by validated Financial Fitness for Life (FFFL) Test, and explore its development by fitting data collected in Hong Kong into a model of socialization and a model of general poverty and comparing their ability to explain the link between family income and the financial literacy of adolescents. The results of the model of socialization show that parental financial behavior can explain the link between family income and the financial literacy of adolescents. The results of the model of general poverty are associated with better influential power, showing that the same link can be mediated by both parental stress and positive parenting behavior. The findings of this study specify the critical role of parents, offer specific entry points for interventions by policymakers and educators, and provide parents with pathways to positively influence the development of financial literacy among adolescents.

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