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How Does Population Aging Impact Household Financial Asset Investment?

The accelerated aging of China’s population will inevitably increase the burden of social retirement and significantly impact the development of financial markets, which is not conducive to sustainable social development. A proper allocation of financial assets will enable households to earn more p...

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Main Authors: Haidong, Yuan, Puah, Chin Hong, Josephine, Yau Tan Hwang
Format: Article
Language:English
Published: MDPI 2022
Subjects:
HG Finance
Online Access:http://ir.unimas.my/id/eprint/45236/1/How%20Does.pdf
http://ir.unimas.my/id/eprint/45236/
https://www.mdpi.com/2071-1050/14/22/15021
https://doi.org/10.3390/ su142215021
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spelling my.unimas.ir.452362024-07-12T02:10:02Z http://ir.unimas.my/id/eprint/45236/ How Does Population Aging Impact Household Financial Asset Investment? Haidong, Yuan Puah, Chin Hong Josephine, Yau Tan Hwang HG Finance The accelerated aging of China’s population will inevitably increase the burden of social retirement and significantly impact the development of financial markets, which is not conducive to sustainable social development. A proper allocation of financial assets will enable households to earn more property income and facilitate the appropriate allocation of social capital. The aging of the population is an essential factor affecting the allocation of financial assets to households. This paper examines the impact of an aging population on household financial asset allocation based on data from the 2015, 2017, and 2019 China Household Finance Surveys (CHFS). The study finds that aging significantly negatively affects household risky financial asset participation, depth of participation, and diversity. The findings remain robust after robustness tests using a two-way fixed effects model. In addition, this paper examines the mechanisms of influence from the perspectives of both risk aversion and financial literacy. In terms of mediating variables, aging increases the risk aversion of household heads, and an increase in risk aversion discourages households from investing in risky financial assets. In terms of moderating variables, the dampening effect of aging on investment in risky financial assets diminishes as financial literacy increases. In addition, empirical findings based on heterogeneity find that aging has a stronger negative impact on risky financial asset participation, depth of participation, and diversity in rural areas. Aging has a stronger negative impact on risky financial asset participation for households with children. MDPI 2022 Article PeerReviewed text en http://ir.unimas.my/id/eprint/45236/1/How%20Does.pdf Haidong, Yuan and Puah, Chin Hong and Josephine, Yau Tan Hwang (2022) How Does Population Aging Impact Household Financial Asset Investment? Sustainability, 14 (22). pp. 1-14. ISSN 2071-1050 https://www.mdpi.com/2071-1050/14/22/15021 https://doi.org/10.3390/ su142215021
institution Universiti Malaysia Sarawak
building Centre for Academic Information Services (CAIS)
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Malaysia Sarawak
content_source UNIMAS Institutional Repository
url_provider http://ir.unimas.my/
language English
topic HG Finance
spellingShingle HG Finance
Haidong, Yuan
Puah, Chin Hong
Josephine, Yau Tan Hwang
How Does Population Aging Impact Household Financial Asset Investment?
description The accelerated aging of China’s population will inevitably increase the burden of social retirement and significantly impact the development of financial markets, which is not conducive to sustainable social development. A proper allocation of financial assets will enable households to earn more property income and facilitate the appropriate allocation of social capital. The aging of the population is an essential factor affecting the allocation of financial assets to households. This paper examines the impact of an aging population on household financial asset allocation based on data from the 2015, 2017, and 2019 China Household Finance Surveys (CHFS). The study finds that aging significantly negatively affects household risky financial asset participation, depth of participation, and diversity. The findings remain robust after robustness tests using a two-way fixed effects model. In addition, this paper examines the mechanisms of influence from the perspectives of both risk aversion and financial literacy. In terms of mediating variables, aging increases the risk aversion of household heads, and an increase in risk aversion discourages households from investing in risky financial assets. In terms of moderating variables, the dampening effect of aging on investment in risky financial assets diminishes as financial literacy increases. In addition, empirical findings based on heterogeneity find that aging has a stronger negative impact on risky financial asset participation, depth of participation, and diversity in rural areas. Aging has a stronger negative impact on risky financial asset participation for households with children.
format Article
author Haidong, Yuan
Puah, Chin Hong
Josephine, Yau Tan Hwang
author_facet Haidong, Yuan
Puah, Chin Hong
Josephine, Yau Tan Hwang
author_sort Haidong, Yuan
title How Does Population Aging Impact Household Financial Asset Investment?
title_short How Does Population Aging Impact Household Financial Asset Investment?
title_full How Does Population Aging Impact Household Financial Asset Investment?
title_fullStr How Does Population Aging Impact Household Financial Asset Investment?
title_full_unstemmed How Does Population Aging Impact Household Financial Asset Investment?
title_sort how does population aging impact household financial asset investment?
publisher MDPI
publishDate 2022
url http://ir.unimas.my/id/eprint/45236/1/How%20Does.pdf
http://ir.unimas.my/id/eprint/45236/
https://www.mdpi.com/2071-1050/14/22/15021
https://doi.org/10.3390/ su142215021
_version_ 1806430300308242432
score 13.211869

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