FACTOR STRATIFICATION OF INDIVIDUAL INVESTORS AS PARTICIPANTS IN THE DOMESTIC GOVERNMENT BORROWING MARKET

Abstract

In the context of open aggression against Ukraine, and taking into account the war of attrition, which leads to increased defence spending and budget deficits, the state should promote the development of the domestic government borrowing market (hereinafter referred to as DGBM) by attracting temporarily available funds from individual investors to purchase government bonds. In order to align the interests of the state and individual investors in the DGBM, it is necessary to conduct factor stratification to determine the priority of factors influencing their investment behaviour. The subject of the study is the investment behaviour of individual investors in the domestic government borrowing market. The purpose of the study is to identify factors influencing the investment behaviour of individual investors as key participants in the DGBM and to stratify them in order to increase investment in government securities to support Ukraine's economy during martial law and ensure financing for post-war reconstruction. The scientific and theoretical basis for the study of factor stratification of individual investors as participants in the domestic government borrowing market consists of methods such as dialectical, generalisation, economic-statistical, analytical, and induction. The factor stratification of individual investors in Ukraine's domestic government borrowing market has enabled us to draw several important conclusions. Firstly, it has been established that factor stratification is a dynamic process of dividing factors that influence the behaviour of individual investors on the DGBM according to a hierarchical principle, which allows for their differentiation and prioritisation. Secondly, the main groups of factors influencing the behaviour of individual investors on the DGBM in the current conditions have been determined and divided according to priority into economic, personal, demographic, fiscal and legal factors. Thirdly, it is argued that the factor stratification of individual investors should form the basis for the development of state investment policy and the strategy for the development of the domestic government borrowing market (DGBM) in order to attract free funds from individual investors to purchase domestic government bonds (DGB), in particular military bonds. Fourthly, there is a proven need for the authorities and regulators of the DGBM not only to ensure growth in the volume of domestic government bond purchases, but also to verify that individual investors have obtained the funds for their purchase legally.