Proceedings of the 5th International Conference on E-Commerce and Internet Technology, ECIT 2024, March 15–17, 2024, Changsha, China

Research Article

Analysis of household demographic structure on risky financial asset allocation based on probit and tobit models

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  • @INPROCEEDINGS{10.4108/eai.15-3-2024.2346185,
        author={Lingling  Zeng and Xiaomin  Wang and Ruili  Zhang},
        title={Analysis of household demographic structure on risky financial asset allocation based on probit and tobit models},
        proceedings={Proceedings of the 5th International Conference on E-Commerce and Internet Technology, ECIT 2024, March 15--17, 2024, Changsha, China},
        publisher={EAI},
        proceedings_a={ECIT},
        year={2024},
        month={5},
        keywords={probit model tobit model household demographic structure risky financial asset allocation},
        doi={10.4108/eai.15-3-2024.2346185}
    }
    
  • Lingling Zeng
    Xiaomin Wang
    Ruili Zhang
    Year: 2024
    Analysis of household demographic structure on risky financial asset allocation based on probit and tobit models
    ECIT
    EAI
    DOI: 10.4108/eai.15-3-2024.2346185
Lingling Zeng1, Xiaomin Wang1,*, Ruili Zhang1
  • 1: Wuhan University of Technology
*Contact email: xiaominwang1022@163.com

Abstract

This study employs Probit and Tobit models to investigate the impact of household demographic structure on the allocation of risky financial assets. Given the evolving Chinese societal landscape, demographic shifts hold profound implications for financial asset allocation, particularly in the context of gradually relaxed new reproductive policies. Utilizing data from the "China Financial Survey" in 2019, this paper conducts empirical research from two perspectives: the propensity of households to engage in risky financial assets and the proportion of investment in such assets. The Probit model uncovers relationships between factors such as family size, elderly dependency ratio, child dependency ratio, and gender of family children with the participation rate in risk assets. On the other hand, the Tobit model reveals connections between household demographic structure and the proportion of investment in risky financial assets. The findings contribute to offering more precise and effective recommendations for household asset allocation, introducing novel perspectives and methods for family financial planning and risk management.