Effects of budget implementation results on Borsa İstanbul 100 index

Stock market indexes and stock prices can be affected by many factors. As a matter of fact, it has been concluded that stock market indexes are associated with various macroeconomic factors in the studies conducted until today. In this context budget balance can also affect the stock market through various parameters. The aim of this study is to investigate whether there is a relationship between budget implementation results and Borsa Istanbul 100 index in Turkey. In this study, 156 observations were used on a monthly basis in the period between the years of 2006 and 2018. The long-term relationship between the central government budget balance and the BIST 100 index was tried to be determined by using the ARDL bound test method. CPI, foreign trade balance and deposit interest rates, which are thought to affect the stock market index, were also used as control variables in the research. As a result of the study, it was concluded that the BIST 100 index was positively correlated with the budget balance and CPI, and negatively with the deposit interest rates and foreign trade balance in the period studied. Key Words: BIST 100 Index, Budget Balance, ARDL Bound Test, Borsa Istanbul, Budget Deficits