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

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.