Determination of Economic and Financial Factors Affecting Investment Instruments: An Application on Borsa İstanbul

This study aims to identify the economic and financial factors affecting investments in stocks, exchange traded funds, and private-sector debt instruments. For this purpose, three different models are developed based on the dependent and independent variables used in the study and the period range of the study is determined as 2008:01 - 2023:07. The current study follows a time series analysis process that takes structural breaks into account and conducts cointegration, causality, impulse-response and variance decomposition analyses. According to the short-term findings, stock investments are affected by inflation, interest rates, reserves, CDS, investor sentiment, risk appetite, and consumer loans; fund investments are affected by inflation, interest rates, reserves, investor sentiment, risk appetite, and consumer loans; and private sector debt instruments are affected by interest rates, reserves, risk appetite, and consumer loans. In addition, according to the long-term findings, stock investments are affected by all independent variables used in the study; fund investments are affected by inflation, interest rates, reserves, investor sentiment, risk appetite, and consumer loans; and finally, private sector debt instruments are affected by inflation, interest rates, reserves, risk appetite, and consumer loans.