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Financial Factors Affecting Investors' Risk Appetite: Empirical Evidence from Domestic and Foreign Investors on BIST

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  • Bertaç Şakir Şahin

    (Yıldız Technical University)

Abstract

This study aims to reveal the risk appetite of domestic and foreign investors in BIST. For this purpose, the effect of weekly data of BIST100 Index, 10-year bond yields, CDS, USD and Euro on the Risk Tendency for the period 2010-2024 is analysed. According to the ARDL bounds test results, Dollar and Euro have a significant effect on the risk appetite of domestic investors. Independent variables have no significant effect on the risk appetite of foreign investors. The findings reveal that equity investments of domestic investors are sensitive to foreign exchange markets.

Suggested Citation

  • Bertaç Şakir Şahin, 2025. "Financial Factors Affecting Investors' Risk Appetite: Empirical Evidence from Domestic and Foreign Investors on BIST," Journal of Finance Letters (Maliye ve Finans Yazıları), Maliye ve Finans Yazıları Yayıncılık Ltd. Şti., vol. 40(123), pages 1-13, April.
    • Handle: RePEc:acc:malfin:v:40:y:2025:i:123:p:1-13
    DOI: https://doi.org/10.33203/mfy.1540758
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    Keywords

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    JEL classification:

    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets

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