Investigating the effects of Information and Communication Technology (ICT) on capital market uncertainty by considering its impact on the textile industry: a case study for Iran

Abstract

Information and Communication Technology (ICT) plays a vital role in sharing information and greater participation in exchanges and trading of investors' shares. Because the use of information and communication technology in financial markets reduces marketing costs, it has a significant role. Therefore, the primary purpose of this research article is to investigate the impact of ICT on capital market uncertainty in Iran. In this study, the GARCH model has been used to estimate the capital market uncertainty index. The results of ARDL model estimation using quarterly data in the period 2011: 1 to 2020: 4 in the short and long term showed the effect of the ratio of online transactions to the total volume of transactions as an ICT indicator on capital market uncertainty in the short term. Long-term are different. In the short run, increasing the ratio of online transactions to the total volume of transactions has increased capital market uncertainty. It has reduced capital market uncertainty in the long run. Other model results showed that inflation, economic growth, and exchange rate significantly affect the performance uncertainty of the total stock exchange index as an indicator of capital market uncertainty. And it takes about 7.5 seasons on average to completely offset the imbalance in capital market uncertainty.