Subjective social standing, psychological well-being, and household financial behavior

Zhixiao Chen, Xinjian Wang, Qiang Dong, Suqin Wu and Yihao Ding

Finance Research Letters, 2025, vol. 82, issue C

Abstract: This study investigates the relationship between subjective social standing (SSS) and participation in high-risk financial portfolios, with psychological well-being (PW) as an intermediary. The analysis is based on the 2020 China Family Panel Studies and employs probit regression, intermediary pathway analysis, and quantile methodologies. Results indicate an inverse U-shaped relationship between SSS and investment behavior, most substantial at the middle quantiles and weakening at higher thresholds. Furthermore, PW partially mediates the relationship, underscoring the psychological pathway by which status perceptions affect financial decision-making. Significant heterogeneity exists in institutional boundaries (urban vs. rural hukou) and regional development gradients, with implications for developing distinct financial inclusion policies.

Keywords: Subjective social standing; Psychological well-being; High-risk financial portfolios; Household financial behavior (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:82:y:2025:i:c:s1544612325007664

DOI: 10.1016/j.frl.2025.107507

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