Financial Planning Ability, Risk Perception and Household Portfolio Choice

Jia, Dekui; Li, Ruihai; Bian, Shibo; Gan, Christopher

doi:10.1080/1540496x.2019.1643319

Cited by 22 publications

(14 citation statements)

References 44 publications

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“…Thus, risk-related factors were also controlled in this study. In addition, demographics including gender, age, race/ethnicity, marital status, education level, employment status and having dependent children were also found to influence household investment decisions (Jia et al, 2019;Liao et al, 2017;Montford and Goldsmith, 2016;Yao and Xu, 2015). Therefore, a series of demographic variables were included as control variables in this study.…”

Section: Control Variablesmentioning

confidence: 99%

Financial literacy or investment experience: which is more influential in cryptocurrency investment?

Zhao

Zhang

2021

IJBM

100

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PurposeThe purpose of this study was to investigate how financial literacy and investment experience impact cryptocurrency investment behavior and explore which factor is more influential in cryptocurrency investment.Design/methodology/approachUsing a sample of US individual investors from the 2018 National Financial Capability Study Investor Survey, a three-step hierarchical logistic regression was conducted following a model-comparison approach. In addition, a mediation analysis was conducted using the Karlson−Holm−Breen (KHB) method to further explore the mediating effect of investment experience between financial literacy and cryptocurrency investment.FindingsThis study found that while both financial literacy and investment experience were positively associated with investing in cryptocurrencies, investment experience was more influential in cryptocurrency investment. The findings also demonstrated that investment experience, especially risky asset holding, had a significant mediating effect between subjective financial knowledge and cryptocurrency investment behavior.Practical implicationsThe findings of this study offer insight to researchers by providing a deeper understanding of the determinants of cryptocurrency investment in the United States. This study also provides detailed implications for financial institutions, financial professionals and policymakers to guide rational cryptocurrency investment behavior.Originality/valueThis study is one of the initial attempts to explore the determinant factors in cryptocurrency investment, an area that has rarely been studied in the literature.

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Section: Control Variablesmentioning

confidence: 99%

Financial literacy or investment experience: which is more influential in cryptocurrency investment?

Zhao

Zhang

2021

IJBM

100

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“…In addition, households usually experience significant constraints on their ability to borrow. Many studies have reported that age, education, income, and financial literacy may affect household financial market participation (Campbell 2006;Guiso, Sapienza, and Zingales 2008;Jia et al 2019;Zhou and Xiao 2018). However, research on intangible assets such as political background is insufficient, as intangible assets may also impact investment behavior.…”

Section: Introductionmentioning

confidence: 99%

Political Background and Household Financial Asset Allocation in China

Chen

Zou

et al. 2021

Emerging Markets Finance and Trade

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Political background is an important factor in determining the household economic behavior. Using 2014-2018 households panel data from the China Family Panel Studies (CFPS), we investigate the effects of political background on China's household asset allocation behavior. We find that political background has a significant positive impact on the financial market participation. Mediation analysis indicates that political background leads to higher household wealth, better social capital, and fewer credit constraints, thus promotes households investments. Further analysis shows that the marginal impact of political background on household investment behavior is more significant in Eastern and urban areas. Our results contribute to the existing literature on the relationship between the political background and the household investment behavior, also enhancing the understanding of the household portfolio heterogeneity.

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“…According to Parker and Fry (2020), half of the American investors own stocks in their portfolios through direct stock holdings, mutual funds or retirement accounts. However, on the other hand, half of the investors choose to not participate in the stock market, which can be problematic for their wealth accumulation in the long term (Engen et al, 2005;Fontes and Kelly, 2013;Jia et al, 2021;Van Rooij et al, 2012;Zhou, 2020).…”

Section: Introductionmentioning

confidence: 99%

Use of social networks in stock investment

Lei

Salazar

2021

IJBM

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PurposeDrawing on the literature regarding the social network and stock investment, this paper aims to focus on the use of the social network on stock ownership decisions at individual levels. This paper also attempts to shed light on potential mediators of the relationship between the social network and stock ownership.Design/methodology/approachTo determine the relationship between stock ownership and using the social network, logistic regression was used. In order to isolate the effect of using hs on stock ownership, a decomposing method was adopted.FindingsThe findings provide evidence of the positive contribution of the use of social networks in stock ownership. Personal characteristics, such as household net worth, homeownership, education level and risk tolerance, may play a vital role in influencing individuals' decisions regarding stock investment. In addition, this study contributes to our understanding of income's mediating role in stock investment decisions.Originality/valueFirst, the authors contribute theoretically by drawing from the assumptions of social networking contagion theory, social influence theory, and social capital theory. Second, we explored potential mediators of the relationship between the social network and stock ownership. Third, this study complements the literature in incorporating the social network in business, financial professionals to be exact.

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Financial Planning Ability, Risk Perception and Household Portfolio Choice

Cited by 22 publications

References 44 publications

Financial literacy or investment experience: which is more influential in cryptocurrency investment?

Financial literacy or investment experience: which is more influential in cryptocurrency investment?

Political Background and Household Financial Asset Allocation in China

Use of social networks in stock investment

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