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Financial knowledge and the diversity of family portfolio

6/1/2015 浏览量:616

Financial knowledge and the diversity of family portfolio

Zeng Zhi-geng1, He Qing2, Wu Yu2, Yin Zhi-chao1

(1. School of Finance, Southwestern University of Finance and Economics, Chengdu, Sichuan, 610074; 2.School of Economics and Management, Southwestern University of Finance and Economics, Chengdu, Sichuan, 610074)


[Abstract] This paper uses the data from the financial investigation on Chinese households in 2013 and adopts OLS and or dered Probit model to study the impact of financial knowledge on the diversity of family portfolio. We find that the level of finan cial knowledge has a significant positive impact on the diversity of the types of family risk assets, and that the higher level its fi nancial knowledge is, the more types of financial products the family tends to hold. Further studies find that financial knowledge level has a significant impact on the diversity of family stock portfolio, and that the accumulation of investment experiences will make it more diversified. The policy implications for this paper lie in that the government should further popularize financial knowledge, guide investors to be involved in financial market in a rational way, and promote health and stable development of China’s financial market.

 

Key words: Financial knowledge; Risk assets; Investment portfolio



Financial knowledge and the diversity of family portfolio.pdf