Natural disaster experiences, resilience resources, and household risky financial market participation: Evidence from China

IF 6.9 2区经济学 Q1 BUSINESS, FINANCE

Research in International Business and Finance Pub Date : 2025-05-01 DOI:10.1016/j.ribaf.2025.102942

Jiankun Liu , Chante Jian Ding

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引用次数: 0

Abstract

Natural disasters have been demonstrated to cause devastating effects on household livelihood, but little is known about the impact of natural disasters on households’ financial behaviors. Using data from the China Household Finance Survey spanning 2019–2021, this study examined the relationship between natural disaster experiences and household risky financial market participation and investigated the role of resilience resources in moderating the potential adverse impact of natural disasters. The findings demonstrated that natural disaster experiences reduced household risky financial market participation rates as well as risky asset allocation in their financial portfolios. This decline was caused by an income decrease, a shift in risk attitudes toward risk aversion, and an increase in psychological stress. Furthermore, the negative impact of natural disaster experiences on risky financial market participation would be mitigated by individual- and household-level resilience resources, i.e., financial literacy and socio-economic status. Our study explained the limited participation puzzle in the risky financial market in China from the perspective of natural disaster risks and highlighted the significance of the improvement in affected households’ finance behaviors by narrowing gaps in resilience resources between households.

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自然灾害经验、弹性资源与家庭风险金融市场参与：来自中国的证据

自然灾害已被证明对家庭生计造成毁灭性影响，但对自然灾害对家庭财务行为的影响知之甚少。利用2019-2021年《中国家庭金融调查》的数据，本研究考察了自然灾害经历与家庭风险金融市场参与之间的关系，并探讨了弹性资源在缓解自然灾害潜在不利影响中的作用。研究结果表明，自然灾害经历降低了家庭风险金融市场参与率以及风险资产在其金融投资组合中的配置。这种下降是由收入减少、风险态度向风险厌恶的转变以及心理压力的增加造成的。此外，自然灾害经历对高风险金融市场参与的负面影响将被个人和家庭层面的韧性资源（即金融素养和社会经济地位）所缓解。我们的研究从自然灾害风险的角度解释了中国高风险金融市场的有限参与之谜，并强调了通过缩小家庭之间的弹性资源差距来改善受灾家庭金融行为的意义。

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来源期刊

Research in International Business and Finance BUSINESS, FINANCE-

CiteScore

11.20

自引率

9.20%

发文量

240

期刊介绍： Research in International Business and Finance (RIBAF) seeks to consolidate its position as a premier scholarly vehicle of academic finance. The Journal publishes high quality, insightful, well-written papers that explore current and new issues in international finance. Papers that foster dialogue, innovation, and intellectual risk-taking in financial studies; as well as shed light on the interaction between finance and broader societal concerns are particularly appreciated. The Journal welcomes submissions that seek to expand the boundaries of academic finance and otherwise challenge the discipline. Papers studying finance using a variety of methodologies; as well as interdisciplinary studies will be considered for publication. Papers that examine topical issues using extensive international data sets are welcome. Single-country studies can also be considered for publication provided that they develop novel methodological and theoretical approaches or fall within the Journal''s priority themes. It is especially important that single-country studies communicate to the reader why the particular chosen country is especially relevant to the issue being investigated. [...] The scope of topics that are most interesting to RIBAF readers include the following: -Financial markets and institutions -Financial practices and sustainability -The impact of national culture on finance -The impact of formal and informal institutions on finance -Privatizations, public financing, and nonprofit issues in finance -Interdisciplinary financial studies -Finance and international development -International financial crises and regulation -Financialization studies -International financial integration and architecture -Behavioral aspects in finance -Consumer finance -Methodologies and conceptualization issues related to finance