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Impact of Information Technology Development on Stock Market Development. Empirical Study in the World’s Leading Capital Markets

Author

Listed:
  • Hossein Rezaie Dolatabadi

    (University of Isfahan)

  • Fatemeh Faghani

    (University of Isfahan)

  • Seyed Mehdi Tabatabaee

    (University of Isfahan)

Abstract

The purpose of this paper is improvement of technology concepts, understanding, traditional and electronic stock trading. This paper examines the impact of information technology development on capital market development. Appropriate applying of IT will be stake for developing electronic trading processes. No doubt, the cultural, understanding IT concepts and applying of this will increase stock market efficiency. In this paper after review from research literature and prior researches, have been tried to examine effect of IT on stock market development by considering development indexes. Statistician Sample is 60 countries using financial development report World Bank. Stock market turnover ratio, the ratio of Stock market capitalization to GDP, the ratio of Stock market value traded to GDP, Ease of access to local equity market have been used for measurement stock market development considered. In addition, Present paper considered mobile – cellular telephone subscriptions, fixed (wired)-broadband subscriptions, fixed-telephone subscriptions, fixed (wired) Internet subscriptions and Percentage of Individuals using the Internet as development indicators of IT. Result of correlation (0.436) and regression confirmed hypothesis. In the end of article, after explain of prior researchers findings have been presented the solutions for IT development in stock market.

Suggested Citation

  • Hossein Rezaie Dolatabadi & Fatemeh Faghani & Seyed Mehdi Tabatabaee, 2013. "Impact of Information Technology Development on Stock Market Development. Empirical Study in the World’s Leading Capital Markets," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 3(1), pages 382-390, January.
    • Handle: RePEc:hur:ijaraf:v:3:y:2013:i:1:p:382-390
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    References listed on IDEAS

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    1. Kummerow, Max & Chan Lun, Joëlle, 0. "Information and communication technology in the real estate industry: productivity, industry structure and market efficiency," Telecommunications Policy, Elsevier, vol. 29(2-3), pages 173-190, March.
    2. Boyan Jovanovic & Jeremy Greenwood, 1999. "The Information-Technology Revolution and the Stock Market," American Economic Review, American Economic Association, vol. 89(2), pages 116-122, May.
    3. De Cesari, Amedeo & Espenlaub, Susanne & Khurshed, Arif & Simkovic, Michael, 2012. "The effects of ownership and stock liquidity on the timing of repurchase transactions," Journal of Corporate Finance, Elsevier, vol. 18(5), pages 1023-1050.
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    Cited by:

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    2. Marszk, Adam & Lechman, Ewa, 2019. "New technologies and diffusion of innovative financial products: Evidence on exchange-traded funds in selected emerging and developed economies," Journal of Macroeconomics, Elsevier, vol. 62(C).

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