Impact of ICT development on Capital Market Growth; Evidences from Tehran Stock Exchange

Many economists, attribute the slowing growth of financial markets to ICT sector inefficiency; therefore the purpose of this study is to find out the effect of ICT development on Growth of capital markets in Iran, using empirical evidences of Tehran Stock Exchange for the time period of 2012 to 2014. For this purpose, a multivariate regression (OLS) model was used to analyze the impact of independent ICT variables such as number of online transactions users, amount of online trading volume, number of electronic published stock exchange notices for exchange users, total amount of ICT expenditure costs, the ratio of capital market active users to total number of stock exchange users and the ratio of online transactions to total number of transactions occurred during the period of study on dependent variable of capital markets growth rate in Tehran Stock Exchange. The results imply that there is a direct and meaningful relationship between ICT tools and equipments and capital markets growth rate in Tehran Stock Exchange which ultimately increases transactions and traders quantity at the end. But the results showed also a distinct result for using different methods of information economics transparency in the Stock Exchange market.