Investigation of Causal of Relations Between the Participation 30 Index and Borsa Istanbul100 Index in Terms of Banking Management

Abstract

Money management is a difficult task, and it has detrimental ramifications if the decisions are not made accurately. The aim of this study is to examine the short and long-term relationships between the participation index operating in the capital markets and the Borsa Istanbul00 index. The relationship between the BIST100 index, which gives information about the general situation of the capital markets, and the logarithmic values of the Participation30 Index, which operates in accordance with Islamic principles in Turkiye, were analyzed by considering the weekly data covering the working days between 2011-2020. Data obtained from the independent online source called, investing.com, was used in the analysis of the study, a cointegration test, causality test, and unit root test were applied, and results were found through an error correction model. The findings were interpreted in line with the results confirming a correlation between the Participation30 and Borsa Istanbul100 indexes. We believe this research will contribute to the scientific literature and money managers greatly.