An Evaluation of Informational Efficiency of Information and Communication Technology Corporates in Tehran Stock Market: inconsistency with the global trend
Subject Areas : Business Management
Ali Asghar Anvari Rostamy
1
(
Academic member (professor) of Tarbiat Modarres University, Tehran, Iran
)
Seyed sepehr Gazi nore
2
(
Associate Professor, Tarbiat Modares University, Tehran, Iran
)
Amir Khorasani
3
(
Master of Information Technology Management, Tarbiat Modarres University, Tehran, Iran
)
Keywords: information and communication technology, Tehran Stock Market, Informational efficiency, Runs Test,
Abstract :
The impact of Information and communication technology to increase financial transactions in different fields shows the Positive developments of this industry in Iran. But could the ICT industry also be efficient in the economic capital of the country? Does the industry that appeared with the nature of contributing to convey and analyze the information has informational efficiency itself? In this study, the ICT industry in the Tehran Stock Exchange was surveyed to check its informational efficiency. The data and documents related to the profitability of companies in this industry for 6 years were studied quantitatively. A total of eight companies with the nature of ICT were selected. To understand the informational efficiency, runs test have been used with two approaches: runs with change relative to the average. The results showed that the ICT industry in Tehran stock exchange has not even a weak level of informational efficiency. The results are completely inconsistent with other countries and show that Iran's ICT condition needs a fundamental reflection.
Allahyari, A. (2008). Investigating the Weak Form of Capital Market Efficiency in Tehran Stock Exchange. Quarterly Journal of the Stock Exchange, 1(4), 75-108, (In Persian).
Antonopoulos, C. & Sakellaris, P. (2009), The contribution of Information and Communication Technology investments to Greek economic growth: An analytical growth accounting framework. Information Economics and Policy 21, 171-191
Azizi, F. (2004). Empirical Test of the Relationship between Inflation and Stock Returns in Tehran Stock Exchange. Quarterly Journal of Economic Research, 11 & 12, 143-156, (In Persian).
Badescu, M. & Garces-Ayerbe, C. (2009), The impact of information technologies on firm productivity: Empirical evidence from Spain. Technovation 29, 122-129
Bani Mahd, B., & Mohseni Sharif, M. (2010). Investigating Factors Affecting on the Ranking of Tehran Stock Exchange Companies in Terms of Quality Disclosure and Timeliness. Management Accounting, 3(7), 51-63, (In Persian).
Brasini, S. &Freo, M., (2012), The impact of information and communication technologies: an insight at micro-level on one Italian region. Economics of Innovation and New Technology, Vol. 21, No. 2, 107-123
Dadkhah, M., Hadi, A., Tavassoli, M., & Almoradi, M. (2010). Measurement of Relative Financial Efficiency of Companies Active in the Manufacturing of Automobile Parts Accepted in Tehran Stock Exchange using Data Envelopment Analysis (DEA) and its Relationship with Stock Returns. Financial Accounting Quarterly, 2(8), 113-133, (In Persian).
Dastgir, M., Sajjadi, H., Khodadadi, A., & Khalili, P. (2009). Investigating the Risk Factors Affecting on the Stock Returns of Companies Active in the Petrochemical Industry. Economic Research Journal, 9(1), 35-58, (In Persian).
Den Hengst, M.&Sol, H.G. (2001), The Impact of Information and Communication Technology on Interorganizational Coordination: Guidelines from Theory. Informing Science, Vol.4, No.3, 129-138
Doran, J. & Peterson, D.R. &Wright, C. (2010), Confidence, opinions of market efficiency, and investment behavior of finance professors. Journal of Financial Markets, 13, 174-195
Drezner, Z. & Turel, O. (2011), Normalizing variables with too-frequent values using a Kolmogorov–Smirnov test: A practical approach. Computers & Industrial Engineering, 61, 1240-1244
Esmaeilzadeh, A. (1999). Investigating the Efficiency of Iran's Capital Market in Determining the Price of Non-Metallic Mineral Products. Master's Thesis, Tehran: Emam Sadeqh University, (In Persian).
Ezirim, C.B. & Elike, U. & Muoghalu, M.I. (2009), Capital Market Growth and Information Technology: Empirical Evidence from Nigeria. International Journal of Business and Economics Perspectives, 4 (1), 1-17
Fama, E.F. (1970), Efficient Capital Markets: A Review Of Theory And Empirical Work.The Journal of Finance,25(2),383-417
Fama, E.F. (1965), The Behavior of Stock-Market Prices. The Journal of Business, 38 (1), 34-105
Farid, D., Bordbar, G., & Mansouri, H. (2009). Identification and Evaluation of Barriers to the Weak Form of Tehran Stock Exchange performance. Economic questions, 6(11), 157-194, (In Persian).
Fernandez, B.C. &Callen, Y.F. &Lainez Gadea, J.A. (2011), Stock Price Reaction to Non-financial News in European Technology Companies.European Accounting Review,20(1),81-111
Gaba, V.& Meyer, A.D. (2008), Crossing the Organizational Species Barrier. Academy of Management Journal, 51(5), 976-998
Hazrati Leylan, A., & Khodavi, A. (2010). The Impact of Information and Communication Technology (Electronic City) on the physical structure of the city from the perspective of the staff of District 1 of the Tabriz Municipality. Beyond Management, 3(12), 135-157, (In Persian).
Hejazi, R., Rahmani, A., & Mozafari, Z. (2010). The Effect of Information Disclosure on the Quality of Information Released by Companies Accepted in Tehran Stock Exchange. Quarterly Journal of the Stock Exchange, 10, 23-36, (In Persian).
Intelligent, M., & Khodadost, H. (2008). Ranking of Listed Companies in Tehran Stock Exchange based on the Availability of Desirable Indices. Journal of Science and Development, 15(24), 190-210, (In Persian).
Islami Bidgoli, Gh., & Sadeghi Batani, A. (2004). Presenting Filter Rules and Comparing the Efficiency of Filter Rules with the Purchase and Maintenance Method. Financial Research, 18, 3-26, (In Persian).
Karimzadeh, M., & Soltani, A. (2010). Estimation of Long-Run Relationship between Stock Price Index of Financial Intermediation Industry and Macro-Monetary Variables Using ARDL Method. Financial Accounting Quarterly, 2(6), 1-18, (In Persian).
Kumar, N.M. (2010), An Efficient Way to minimize the Impact of Risks in Information and Communications Technology (ICT) Sector. Advances in Management, 3 (9), 17-20
Lucas, H.C.J. & Oh, W. &Weber, B.W.(2009), The defensive use of IT in a newly vulnerable market:The New York Stock Exchange, 1980–2007. Journal of Strategic Information Systems, 18, 3-15
Macy, A. & Terry, N. & Owens, J. (2010), Stock market performance of computer software firms across multiple periods. Journal of Finance and Accountancy, 4 (1), 1-17
Mahdavi Adeli, M., & Fahimi Dowab, R. (2010). Comparison of the Effect of Official Information and Rumors on the Choosing Real Buyers in Tehran Stock Exchange. Journal of Science and Development, 17(32), 67-85, (In Persian).
Mahmoudzadeh, M. (2010). The Effect of Information Technology on the Total Productivity of Production Factors in Selected Developing Countries. Quarterly Journal of Commerce Research, 57, 29-64, (In Persian).
Mehedooshi, M., & Mohammadi, A. S. (2008). Influence of Information Technology on the Securities Market of Iran. Economic Research, 8(2), 161-188, (In Persian).
Melville, N. & Kraemer, K. & Gurbaxani, V. (2004), Information Technology and Organizational Performance an: Integrative Model of ITS Business Value. MIS Quarterly, 28 (2), 283-322
Memarnejad, A., & Dizaji, M. (2010). The Effect of Information and Communication Technology on the Inflation in Selected Countries. Beyond Management, 4(14), 183-210, (In Persian).
Mobarek, A.& Keasey, K. (2008), Weak-form market efficiency of an emerging market: evidence from dhaka Stock market of Bangladesh. Journal of Emerging Market Finance, 7, 17-41
Momeni, M., & Najafi Moghadam, A. S. (2004). Evaluation of Economic Performance of Companies Accepted in Tehran Stock Exchange Using the TOPSIS Model. Economic Reviews Quarterly, 1(3), 55-75, (In Persian).
Prabahar, R. & Dhinakaran, J.& Pandian, P. (2008), Return and Risk Analysis of Indian Information Technology Sector Stocks. The Icfai Journal of Financial Risk Management, 5 (1), 41-49
Qiao, Z.& Smyth, R. & Wong, W.K. (2008), Volatility switching and regime interdependence between information technology stocks 1995–2005. Global Finance Journal, 19, 139-156
Rozanova, N. (2010), Competitive Interactions in the Information Technology Sector: International Experience and Russia. Problems of Economic Transition, 25 (10), 44–64
Seddiary, M. T. A., &Sajjadi, M. (2010). Assessment of the Adequacy of Systematic Risk Variables, the Ratio of Book Value to Market Value, Firm Size, Price to Revenue Ratio, Income to Price Ratio, Market Returns, Returns Without Risk and Market Risk in Explaining the Actual Return on Equity in the Iranian Capital Market. Industrial Management Journal of Sanandaj Azad University, 5(11), 137-151, (In Persian).
Tehrani, R., & Khoshnod, M. (2005). Identification and Ranking of Effective Groups on the Decision to Buy and Sell Individual Investors' Shares in Tehran Stock Exchange. Culture of Management, 3(10), 203-219, (In Persian).
Tsai, H.C. & Hua, M. S. (2006), Can Intellectual Capital Powerfully Explain the Stock Price of Electronic Companies? Taiwan Academy of Management Journal, 6 (2), 237-250
http://www.pwc.com/gx/en/annual-review/download order.jhtml? WT.mc=GAR-GHP
_||_Allahyari, A. (2008). Investigating the Weak Form of Capital Market Efficiency in Tehran Stock Exchange. Quarterly Journal of the Stock Exchange, 1(4), 75-108, (In Persian).
Antonopoulos, C. & Sakellaris, P. (2009), The contribution of Information and Communication Technology investments to Greek economic growth: An analytical growth accounting framework. Information Economics and Policy 21, 171-191
Azizi, F. (2004). Empirical Test of the Relationship between Inflation and Stock Returns in Tehran Stock Exchange. Quarterly Journal of Economic Research, 11 & 12, 143-156, (In Persian).
Badescu, M. & Garces-Ayerbe, C. (2009), The impact of information technologies on firm productivity: Empirical evidence from Spain. Technovation 29, 122-129
Bani Mahd, B., & Mohseni Sharif, M. (2010). Investigating Factors Affecting on the Ranking of Tehran Stock Exchange Companies in Terms of Quality Disclosure and Timeliness. Management Accounting, 3(7), 51-63, (In Persian).
Brasini, S. &Freo, M., (2012), The impact of information and communication technologies: an insight at micro-level on one Italian region. Economics of Innovation and New Technology, Vol. 21, No. 2, 107-123
Dadkhah, M., Hadi, A., Tavassoli, M., & Almoradi, M. (2010). Measurement of Relative Financial Efficiency of Companies Active in the Manufacturing of Automobile Parts Accepted in Tehran Stock Exchange using Data Envelopment Analysis (DEA) and its Relationship with Stock Returns. Financial Accounting Quarterly, 2(8), 113-133, (In Persian).
Dastgir, M., Sajjadi, H., Khodadadi, A., & Khalili, P. (2009). Investigating the Risk Factors Affecting on the Stock Returns of Companies Active in the Petrochemical Industry. Economic Research Journal, 9(1), 35-58, (In Persian).
Den Hengst, M.&Sol, H.G. (2001), The Impact of Information and Communication Technology on Interorganizational Coordination: Guidelines from Theory. Informing Science, Vol.4, No.3, 129-138
Doran, J. & Peterson, D.R. &Wright, C. (2010), Confidence, opinions of market efficiency, and investment behavior of finance professors. Journal of Financial Markets, 13, 174-195
Drezner, Z. & Turel, O. (2011), Normalizing variables with too-frequent values using a Kolmogorov–Smirnov test: A practical approach. Computers & Industrial Engineering, 61, 1240-1244
Esmaeilzadeh, A. (1999). Investigating the Efficiency of Iran's Capital Market in Determining the Price of Non-Metallic Mineral Products. Master's Thesis, Tehran: Emam Sadeqh University, (In Persian).
Ezirim, C.B. & Elike, U. & Muoghalu, M.I. (2009), Capital Market Growth and Information Technology: Empirical Evidence from Nigeria. International Journal of Business and Economics Perspectives, 4 (1), 1-17
Fama, E.F. (1970), Efficient Capital Markets: A Review Of Theory And Empirical Work.The Journal of Finance,25(2),383-417
Fama, E.F. (1965), The Behavior of Stock-Market Prices. The Journal of Business, 38 (1), 34-105
Farid, D., Bordbar, G., & Mansouri, H. (2009). Identification and Evaluation of Barriers to the Weak Form of Tehran Stock Exchange performance. Economic questions, 6(11), 157-194, (In Persian).
Fernandez, B.C. &Callen, Y.F. &Lainez Gadea, J.A. (2011), Stock Price Reaction to Non-financial News in European Technology Companies.European Accounting Review,20(1),81-111
Gaba, V.& Meyer, A.D. (2008), Crossing the Organizational Species Barrier. Academy of Management Journal, 51(5), 976-998
Hazrati Leylan, A., & Khodavi, A. (2010). The Impact of Information and Communication Technology (Electronic City) on the physical structure of the city from the perspective of the staff of District 1 of the Tabriz Municipality. Beyond Management, 3(12), 135-157, (In Persian).
Hejazi, R., Rahmani, A., & Mozafari, Z. (2010). The Effect of Information Disclosure on the Quality of Information Released by Companies Accepted in Tehran Stock Exchange. Quarterly Journal of the Stock Exchange, 10, 23-36, (In Persian).
Intelligent, M., & Khodadost, H. (2008). Ranking of Listed Companies in Tehran Stock Exchange based on the Availability of Desirable Indices. Journal of Science and Development, 15(24), 190-210, (In Persian).
Islami Bidgoli, Gh., & Sadeghi Batani, A. (2004). Presenting Filter Rules and Comparing the Efficiency of Filter Rules with the Purchase and Maintenance Method. Financial Research, 18, 3-26, (In Persian).
Karimzadeh, M., & Soltani, A. (2010). Estimation of Long-Run Relationship between Stock Price Index of Financial Intermediation Industry and Macro-Monetary Variables Using ARDL Method. Financial Accounting Quarterly, 2(6), 1-18, (In Persian).
Kumar, N.M. (2010), An Efficient Way to minimize the Impact of Risks in Information and Communications Technology (ICT) Sector. Advances in Management, 3 (9), 17-20
Lucas, H.C.J. & Oh, W. &Weber, B.W.(2009), The defensive use of IT in a newly vulnerable market:The New York Stock Exchange, 1980–2007. Journal of Strategic Information Systems, 18, 3-15
Macy, A. & Terry, N. & Owens, J. (2010), Stock market performance of computer software firms across multiple periods. Journal of Finance and Accountancy, 4 (1), 1-17
Mahdavi Adeli, M., & Fahimi Dowab, R. (2010). Comparison of the Effect of Official Information and Rumors on the Choosing Real Buyers in Tehran Stock Exchange. Journal of Science and Development, 17(32), 67-85, (In Persian).
Mahmoudzadeh, M. (2010). The Effect of Information Technology on the Total Productivity of Production Factors in Selected Developing Countries. Quarterly Journal of Commerce Research, 57, 29-64, (In Persian).
Mehedooshi, M., & Mohammadi, A. S. (2008). Influence of Information Technology on the Securities Market of Iran. Economic Research, 8(2), 161-188, (In Persian).
Melville, N. & Kraemer, K. & Gurbaxani, V. (2004), Information Technology and Organizational Performance an: Integrative Model of ITS Business Value. MIS Quarterly, 28 (2), 283-322
Memarnejad, A., & Dizaji, M. (2010). The Effect of Information and Communication Technology on the Inflation in Selected Countries. Beyond Management, 4(14), 183-210, (In Persian).
Mobarek, A.& Keasey, K. (2008), Weak-form market efficiency of an emerging market: evidence from dhaka Stock market of Bangladesh. Journal of Emerging Market Finance, 7, 17-41
Momeni, M., & Najafi Moghadam, A. S. (2004). Evaluation of Economic Performance of Companies Accepted in Tehran Stock Exchange Using the TOPSIS Model. Economic Reviews Quarterly, 1(3), 55-75, (In Persian).
Prabahar, R. & Dhinakaran, J.& Pandian, P. (2008), Return and Risk Analysis of Indian Information Technology Sector Stocks. The Icfai Journal of Financial Risk Management, 5 (1), 41-49
Qiao, Z.& Smyth, R. & Wong, W.K. (2008), Volatility switching and regime interdependence between information technology stocks 1995–2005. Global Finance Journal, 19, 139-156
Rozanova, N. (2010), Competitive Interactions in the Information Technology Sector: International Experience and Russia. Problems of Economic Transition, 25 (10), 44–64
Seddiary, M. T. A., &Sajjadi, M. (2010). Assessment of the Adequacy of Systematic Risk Variables, the Ratio of Book Value to Market Value, Firm Size, Price to Revenue Ratio, Income to Price Ratio, Market Returns, Returns Without Risk and Market Risk in Explaining the Actual Return on Equity in the Iranian Capital Market. Industrial Management Journal of Sanandaj Azad University, 5(11), 137-151, (In Persian).
Tehrani, R., & Khoshnod, M. (2005). Identification and Ranking of Effective Groups on the Decision to Buy and Sell Individual Investors' Shares in Tehran Stock Exchange. Culture of Management, 3(10), 203-219, (In Persian).
Tsai, H.C. & Hua, M. S. (2006), Can Intellectual Capital Powerfully Explain the Stock Price of Electronic Companies? Taiwan Academy of Management Journal, 6 (2), 237-250
http://www.pwc.com/gx/en/annual-review/download order.jhtml? WT.mc=GAR-GHP
