Cognitive ability and household portfolio diversification: Evidence from China

被引：0
|
作者：
Wu, Kun [1 ]
Li, Yanhong [2 ]
Cai, Xianjun [3 ]
Yin, Junming [4 ]
机构：
[1] Beijing Wuzi Univ, Sch Econ, Beijing 101149, Peoples R China
[2] Univ Int Business & Econ, Sch Banking & Finance, Beijing 100029, Peoples R China
[3] Nanjing Audit Univ, Sch Accounting, Nanjing 211815, Jiangsu, Peoples R China
[4] Nanjing Univ Informat Sci & Technol, Sch Business, Nanjing 210044, Jiangsu, Peoples R China
来源：
PACIFIC-BASIN FINANCE JOURNAL | 2022年 / 75卷
关键词：
Cognitive abilities; Portfolio diversification; Behavioral biases; FINANCIAL LITERACY; STOCK; DECISIONS; BEHAVIOR; COSTS;
D O I：
10.1016/j.pacfin.2022.101840
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
The low level of portfolio diversification is one of the potential high-cost deviations. Based on the data from the 2010 and 2012 China Family Panel Studies(CFPS), this paper empirically analyzes the impact of cognitive ability on the Chinese households portfolio diversification. The results show that cognitive ability has a significant positive effect on the diversification of household portfolio, including the more asset classes, the higher the diversification index of the portfolio, the greater the likelihood of buying a fund, and the higher the proportion of funds of the three assets. After considering the possible endogeneity, the effect of cognitive ability on the diversification of household portfolio is still significantly positive. Using different models, grouping by wealth and level of financial development, the results of this article are robust. We contribute by adding new evidence of diversified portfolio from emerging markets and expanding the scope of cognitive research.
引用
收藏
页数：16
相关论文
共 50 条
  • [21] Specialization and Diversification in Cities: The Evidence from China
    Cai Min-rong
    Mao Yan-hua
    [J]. PROCEEDINGS OF 2013 6TH INTERNATIONAL CONFERENCE ON INFORMATION MANAGEMENT, INNOVATION MANAGEMENT AND INDUSTRIAL ENGINEERING (ICIII 2013) VOL 1, 2013, : 158 - +
  • [22] PORTFOLIO DIVERSIFICATION WITH BITCOIN. EVIDENCE FROM INSTITUTIONAL INVESTORS PERSPECTIVE
    Grujic, Milos
    Soja, Tijana
    [J]. CASOPIS ZA EKONOMIJU I TRZISNE KOMUNIKACIJE, 2022, 12 (01): : 111 - 125
  • [23] The role of portfolio diversification in the hotel industry Evidence from the Italian market
    Giannotti, Claudio
    Mattarocci, Gianluca
    Spinelli, Luca
    [J]. EUROMED JOURNAL OF BUSINESS, 2011, 6 (01) : 24 - 45
  • [24] Portfolio diversification with cryptocurrencies - Evidence from Middle Eastern stock markets
    Kumaran, Sunitha
    [J]. INVESTMENT ANALYSTS JOURNAL, 2022, 51 (01) : 14 - 34
  • [25] Narrow diversification, wide diversification, and audit quality, evidence from China
    Hao, Jun
    Liu, Linxiao
    Xu, Zhaohui
    [J]. ASIAN REVIEW OF ACCOUNTING, 2018, 26 (02) : 248 - 263
  • [26] Portfolio diversification possibilities of cryptocurrency: global evidence
    Jayawardhana, Asanga
    Colombage, Sisira R. N.
    [J]. APPLIED ECONOMICS, 2024, 56 (47) : 5618 - 5633
  • [27] Household livelihood diversification and gender: Panel evidence from rural Kenya
    Loison, Sarah Alobo
    [J]. JOURNAL OF RURAL STUDIES, 2019, 69 : 156 - 172
  • [28] Overconfidence, Financial Advice Seeking and Household Portfolio Under-Diversification
    Broekema, Stijn P. M.
    Kramer, Marc M.
    [J]. JOURNAL OF RISK AND FINANCIAL MANAGEMENT, 2021, 14 (11)
  • [29] Analysis of Variance in Household Financial Portfolio Choice: Evidence from Spain
    Callado-Munoz, F. J.
    Gonzalez-Chapela, J.
    Utrero-Gonzalez, N.
    [J]. FINANCE A UVER-CZECH JOURNAL OF ECONOMICS AND FINANCE, 2017, 67 (05): : 439 - 459
  • [30] Religion and household borrowing: Evidence from China
    Feng, Dawei
    Gao, Mengtao
    Zhou, Li
    [J]. INTERNATIONAL REVIEW OF ECONOMICS & FINANCE, 2023, 88 : 60 - 72
12345