Suchergebnisse

Country risk is an important factor affecting the risk appetite of investors
who want to create an optimal portfolio by minimizing their risks. Investor
risk appetite can affect country risk as a factor contributing to the
development of financial markets and the country's economy. The aim of this
study is to determine the relationship between investor risk appetite and
country risk. Hatemi-J cointegration and Hatemi-J asymmetric causality tests
were used to determine the relationship between CDS premium, which is
frequently preferred to represent country risk, and domestic and foreign
investor risk appetite variables. As a result of the analysis, it has been
determined that CDS premium and domestic and foreign investor risk appetite
variables are cointegrated, a positive causality from increases in both
local and foreign investor risk appetite to CDS premium and a negative or
positive causality from decreases in CDS variables to both local and foreign
investor risk appetite.