IDEAS home Printed from https://ideas.repec.org/a/hur/ijaraf/v3y2013i1p382-390.html
   My bibliography  Save this article

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
    as

    Download full text from publisher

    File URL: http://www.hrmars.com/admin/pics/1688.pdf
    Download Restriction: no
    File URL: http://www.hrmars.com/admin/pics/1688.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jerry Ikechukwu Igwilo & Athenia Bongani Sibindi, 2022. "ICT Adoption and Stock Market Development: Empirical Evidence Using a Panel of African Countries," Risks, MDPI, vol. 10(2), pages 1-17, January.
    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).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fatemeh Faghani & Solmaz Habibi & Seyed Mehdi Tabatabaee & Leila Razavi & Mohammad Kazem Emadzadeh, 2013. "The Role of Information Technology on Stock Market Development," 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 353-358, January.
    2. Clarke, Nicholas, 2022. "It's just a matter of time: Abnormal returns after firms stop repurchasing shares," Finance Research Letters, Elsevier, vol. 49(C).
    3. Peng Wang & Xiaoyan Lin & Dajun Dai, 2017. "Spatiotemporal Agglomeration of Real-Estate Industry in Guangzhou, China," Sustainability, MDPI, vol. 9(8), pages 1-15, August.
    4. Ahn, Sanghoon, 2003. "Technology Upgrading with Learning Cost," CEI Working Paper Series 2003-21, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    5. Jonathan Temple, 2002. "The Assessment: The New Economy," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 18(3), pages 241-264.
    6. Bae, Jinho & Nelson, Charles R., 2007. "Earnings growth and the bull market of the 1990s: Is there a case for rational exuberance?," Journal of Macroeconomics, Elsevier, vol. 29(4), pages 690-707, December.
    7. Patrick Francois & Joanne Roberts, 2003. "Contracting Productivity Growth," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 70(1), pages 59-85.
    8. Gerard Llobet & Javier Suarez, 2010. "Entrepreneurial Innovation, Patent Protection and Industry Dynamics," Working Papers wp2010_1001, CEMFI.
    9. Chen, Anlin & Lu, Cheng-Shou, 2015. "The effect of managerial overconfidence on the market timing ability and post-buyback performance of open market repurchases," The North American Journal of Economics and Finance, Elsevier, vol. 33(C), pages 234-251.
    10. Muhammad Ali Nasir & Milton Yago & Alaa M. Soliman & Junjie Wu, 2016. "Financial stability, wealth effects and optimal macroeconomic policy combination in the United Kingdom: A new-Keynesian dynamic stochastic general equilibrium framework," Cogent Economics & Finance, Taylor & Francis Journals, vol. 4(1), pages 1136098-113, December.
    11. Anderson, Ronald W. & Nyborg, Kjell G., 2011. "Financing and corporate growth under repeated moral hazard," Journal of Financial Intermediation, Elsevier, vol. 20(1), pages 1-24, January.
    12. Ellen R. McGrattan & Edward C. Prescott, 2005. "Taxes, Regulations, and the Value of U.S. and U.K. Corporations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 72(3), pages 767-796.
    13. Joshua S. Gans & David H. Hsu & Scott Stern, 2002. "When Does Start-Up Innovation Spur the Gale of Creative Destruction?," RAND Journal of Economics, The RAND Corporation, vol. 33(4), pages 571-586, Winter.
    14. Chanda, Areendam, 2008. "The rise in returns to education and the decline in household savings," Journal of Economic Dynamics and Control, Elsevier, vol. 32(2), pages 436-469, February.
    15. Ronald W. Anderson & Kjell G. Nyborg, 2002. "Agency and the Pace of Adoption of New Techniques," Recherches économiques de Louvain, De Boeck Université, vol. 68(1), pages 203-220.
    16. Nathan S. Balke & Mark E. Wohar, 2006. "What Drives Stock Prices? Identifying the Determinants of Stock Price Movements," Southern Economic Journal, John Wiley & Sons, vol. 73(1), pages 55-78, July.
    17. John Goddard & David Mcmillan & John Wilson, 2008. "Dividends, prices and the present value model: firm-level evidence," The European Journal of Finance, Taylor & Francis Journals, vol. 14(3), pages 195-210.
    18. Patrick Francois & Huw Lloyd-Ellis, 2005. "I - Q Cycles," Working Paper 1040, Economics Department, Queen's University.
    19. Jakob B Madsen & E Philip Davis, 2006. "Equity Prices, Productivity Growth and 'The New Economy'," Economic Journal, Royal Economic Society, vol. 116(513), pages 791-811, July.
    20. Drousia, Angeliki & Episcopos, Athanasios & Leledakis, George N., 2019. "Market reaction to actual daily share repurchases in Greece," The Quarterly Review of Economics and Finance, Elsevier, vol. 74(C), pages 267-277.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hur:ijaraf:v:3:y:2013:i:1:p:382-390. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Hassan Danial Aslam (email available below). General contact details of provider: http://hrmars.com/index.php/pages/detail/Accounting-Finance-Journal .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.