Subjective Well-Being, Household Financial Asset Accumulation, and Investment Risk Tolerance

Qiyue Sun

doi:10.54254/2754-1169/2025.BJ25389

Advances in Economics, Management and Political SciencesOpen access

Subjective Well-Being, Household Financial Asset Accumulation, and Investment Risk Tolerance

Research Article

Open Access

Subjective Well-Being, Household Financial Asset Accumulation, and Investment Risk Tolerance

Qiyue Sun ^1*

¹ Shenyang Normal University

^*Corresponding author: lx19531772913@126.com

Published on 24 July 2025

AEMPS Vol.205

ISSN (Print): 2754-1177

ISSN (Online): 2754-1169

ISBN (Print): 978-1-80590-293-5

ISBN (Online): 978-1-80590-294-2

Download Cover

Abstract

This paper investigates the relationship between subjective well-being, household financial asset accumulation, and investment risk tolerance. Based on empirical analysis using data from the China Household Finance Survey (CHFS), the results show that after controlling for factors such as year, region, and occupation, household financial asset accumulation has a significantly positive effect on individual well-being. Endogeneity is tested using total household income as an instrumental variable. Further analysis reveals that low investment risk tolerance negatively moderates the relationship between household financial assets and well-being, while high investment risk tolerance positively moderates the relationship between stock investment and well-being. This suggests that households with low risk tolerance experience greater increases in well-being as their financial situation improves, whereas households with high risk tolerance are more likely to enhance well-being through stock investment.

Keywords:

Subjective Well-being, Household Financial Asset Accumulation, Investment Risk Tolerance, China Household Finance Survey

View PDF

References

[1]. Campbell, John Y. 2025.Intertemporal Asset Pricing without Consumption Data.The American Economic Review, vol. 83, no. 3, 1993, pp. 487–512.JSTOR, Accessed 21 June .http: //www.jstor.org/stable/2117530. Accessed 21 June 2025.

[2]. Li Y.2025.Fragile New Economy: Intangible Capital, Corporate Savings Glut, and Financial Instability.American Economic Review 15 (4): 1100–1141.DOI: 10.1257/aer.20190650

[3]. Liu D, Zhao L, Yi H.2024.Financial market participation, household asset choices, and resident well-being: Anempirical analysis of China family panel studies data, Finance Research Letters, Volume 67, Part B, 105885.ISSN1544-6123, https: //doi.org/10.1016/j.frl.2024.105885.

[4]. Chipunza K J, and Fanta A B.2023.Asset accumulation, financial inclusion and subjective well‐being: The role of financial formality in South Africa's households.Review of Development Economics 28.1: 128-150.https: //doi.org/10.1111/rode.13044

[5]. Jing P, Zhao S, Wang M.2025.From savings to investments: How retirement consumption expectations shape household risky financial asset allocation, Pacific-Basin Finance Journal, Volume 93, 102828, ISSN 0927-538X.https: //doi.org/10.1016/j.pacfin.2025.102828.

References

[2]. Li Y.2025.Fragile New Economy: Intangible Capital, Corporate Savings Glut, and Financial Instability.American Economic Review 15 (4): 1100–1141.DOI: 10.1257/aer.20190650

Cite this article

Sun,Q. (2025). Subjective Well-Being, Household Financial Asset Accumulation, and Investment Risk Tolerance. Advances in Economics, Management and Political Sciences,205,14-21.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

About volume

Volume title: Proceedings of ICEMGD 2025 Symposium: The 4th International Conference on Applied Economics and Policy Studies

ISBN: 978-1-80590-293-5(Print) / 978-1-80590-294-2(Online)

Editor: Florian Marcel Nuţă Nuţă, Xuezheng Qin

Conference website: https://www.icemgd.org/

Conference date: 20 September 2025

Series: Advances in Economics, Management and Political Sciences

Volume number: Vol.205

ISSN: 2754-1169(Print) / 2754-1177(Online)

© 2024 by the author(s). Licensee EWA Publishing, Oxford, UK. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license. Authors who publish this series agree to the following terms:

1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this series.

2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this series.

3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See Open access policy for details).