Key factors influencing household asset allocation of relocated households: a case study of Hangzhou

Land acquisition and demolition (LAD) provides large-scale non-agricultural construction land for China's rapid economic development and urbanization. Considering the shift from housing resettlement to monetary compensation, the number of relocated households becoming wealthy overnight during LAD have increased substantially. Relocated households that received high compensation likely experience a serious psychological impact and maybe unable to reasonably allocate their household assets. Although a few studies have investigated household asset allocation (HAA) of relocated households, the key influencing factors remain unknown. This study uses a regression model on the basis of the empirical research conducted in Hangzhou to mitigate this deficiency. The regression model analyzes HAA of relocated households from the perspectives of psychological cognition and external environmental stimuli. Empirical results revealed the following: first, mental accounting and social conformity have positive impacts on daily expense, leveraged, and long-term income accounts, and social conformity has a positive impact on investment accounts additionally; second, monetary compensation affects daily expense and investment accounts positively, financial market affects investment and long-term income accounts negatively, and social security affects investment and long-term income accounts positively; third, external stimuli partly moderated the relationship between psychological cognition and HAA. The findings can provide useful references for local governments to optimize the resettlement policy and also facilitate relocated households to allocate their assets reasonably.