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

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.