The Impact of Information Technology on Global Capital Market Operations: A Critical Appraisal of Some Selected Developed and Emerging Markets

Abstract

This study evaluates the impact of information technology on global capital markets operation with particular reference to the equity markets using a simple percentage and multiple regression analyses. Technology has fundamentally changed the landscape of the global financial market place by lowering transaction costs and thus leveling the playing field for investors and issuers. The data in the present study were collected from WFE, IMF, WEO from 2001 to 2010 for some selected developed and emerging markets, and through the use of a structured questionnaire. Equity market developments and its indicators as a whole were regressed against ICT developments indicators (i.e. telecommunication industry, internet technology, computer and regulatory industry and cloud computing technology). Using equity markets development as a dependent variable, the results disclose that ICT development indicators were all correct and positively signed. Information Technology have contributed to the growth of the global equity markets, with the effects mostly reflected in the aggregates of the equity markets indicators.

Keywords: ICT, Market, transaction, investors, cost, operation, market, development