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

Author

Listed:
  • Chen, Zhixiao
  • Wang, Xinjian
  • Dong, Qiang
  • Wu, Suqin
  • Ding, Yihao

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.

Suggested Citation

  • Chen, Zhixiao & Wang, Xinjian & Dong, Qiang & Wu, Suqin & Ding, Yihao, 2025. "Subjective social standing, psychological well-being, and household financial behavior," Finance Research Letters, Elsevier, vol. 82(C).
    • Handle: RePEc:eee:finlet:v:82:y:2025:i:c:s1544612325007664
    DOI: 10.1016/j.frl.2025.107507
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