Template-Type: ReDIF-Article 1.0

Author-Name: Eszter Balogh
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: baloghes@mnb.hu

Author-Name: Zsuzsa Kékesi
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: kekesizs@mnb.hu
Author-Person: pkk10

Author-Name: Balázs Sisak
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: sisakb@mnb.hu

Title: Analysis of Households’ Investment Decisions Based on International Data

Abstract: The paper attempts to pinpoint the economic, demographic and risk-taking factors
that influence households’ demand for risky financial assets, using the Household
Finance and Consumption Survey (HFCS) database as the basis for the analysis.
From the perspective of risky asset holding, supply is also important, and therefore
clustering was used to identify several country groups based on capital market
features. The study mainly focuses on the countries that are, similar to Hungary, less
active based on their capital market features, but the characteristics of countries
with a more active capital market are also presented for comparison. In line with the
empirical literature, demand for risky assets is examined using econometric tools,
isolating the effect of the significant factors. Accordingly, separate logit models were
created for the demand factors in the different country groups under review, i.e.
those with a less mature and those with a highly mature capital market. The results
indicate that income, wealth, skills and risk-taking positively influence risky asset
holding, while liquidity constraints and background risks have a negative influence;
the findings confirm the preliminary expectations and can be deemed robust.

Classification-JEL: D14, D31, E21
Keywords: income, savings, financial assets, household
Pages: 60-87
Volume: 18
Issue: 1
Year: 2019
File-URL: http://english.hitelintezetiszemle.hu/letoltes/fer-18-1-st3-balogh-kekesi-sisak.pdf
File-Format: Application/pdf
Handle: RePEc:mnb:finrev:v:18:y:2019:i:1:p:60-87