The Advancement of Information Technology and Its Effect on Industries.

The objective of this research is to study the causality relationship between the Information Technology industry and the nine other industries. Prior literatures found proof that volatility of stock prices carry information that can be used on the decision of investment; here we apply Granger causality by using of a leveraged bootstrap test developed by Hacker and Hatemi-J (2006) to investigate the behavior of the volatility. The results show that the volatility of Information Technology industry has an effect on the volatility of Industrials and Consumer Discretionary industries. Also, the Information Technology industry market was affected by five out of nine other industries - Materials, Industrials, Consumer Staples, Health Care and Telecommunication Services industrials. [ABSTRACT FROM AUTHOR]