Assessing the relationship between information technology innovation and common equity capital expenditure in Tehran Stock Exchange

Background and purpose: The importance of information technology and its effects for companies has dramatically increased and its growth and development is felt. It is often stated that it is the most important factor to increase productivity and reduce costs. Many small and medium businesses in order to abstain from corporate deterioration are economically committed to adopting these technologies. They should do this through the inherent risks of these technologies as well as the security of its business continuity, even after unexpected and hard events. Therefore, the main objective of this study was to evaluate the relationship between information technology innovation and common equity capital expenditure in Tehran Stock Exchange. Method of Examination: For this purpose, the number of 94 companies accepted in the stock exchange were studied and analyzed in 2011 to 2016 years. To analyze the collected data, correlation test and linear regression were used. Results: The results showed that there was no significant relationship between the research and development expenditure and the cost of normal equity and the cost of debt, because the significant level of these two variables was 964/0, 186/0 respectively, which is more than 5%, so that the hypothesis of the research would not be confirmed. Other results showed that financial leverage variables, equity ratio, normal equity expenditure and debt costs have a significant effect on information technology innovation, therefore, these hypotheses are approved