The Effect of Information and Communication Technology Development on Stock Market Fluctuations in Iran

Document Type : Original Article

Authors

1 Assistant Prof., Department of Economics, Semnan University, Semnan, Iran

2 Master of Economics, Semnan University, Semnan, Iran.

Abstract

The purpose of this study is to investigate the relationship between changes in new communication technologies and fluctuations in the Tehran Stock Exchange index (or market risk). The issue is important because the development of financial markets and its impact on cyberspace and the field of information and communication technology, on the one hand can cause fluctuations and consequently abuse for some, and on the other hand can raise awareness and provide Proper information to reduce fluctuations, and therefore the subject requires proper management and the establishment of correct and efficient laws in this area. To answer the main question of the research, data of information and communication technology and stock price index fluctuations. have been used as the main variables and price fluctuations in the goods and services market, exchange rate fluctuations, gold price fluctuations and crude oil price fluctuations as control variables during The time period of 1991-2020 has been used. the results obtained from the ARDL method indicate that the ICT index has a negative and significant effect on the stock market fluctuations. In other words, the improvement of the ICT index over the past years has reduced the fluctuations of the stock market. Therefore, by properly managing and improving the performance of ICT indicators, the risk of financial markets can be reduced and fluctuators in the market can be prevented from being abused. The effect of control variables has been evaluated.

Keywords

References

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Financial Management Perspective
Volume 12, Issue 39
September 2022
Pages 83-102

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