Results

Found 4 articles

Clear filters

A meta-analysis of the factors influencing the impact of security breach announcements on stock returns of firms
PDF
2022 | Electronic Markets | Citations: 0
Authors: Ebrahimi, Sepideh; Eshghi, Kamran

Abstract: Concurrent with the increase in organizations’ reliance on IT systems for conduc ... Expand

Abstract: Concurrent with the increase in organizations’ reliance on IT systems for conducting business with their consumers and partners, there have been increases in the risk and instances of security breaches of IT systems. As a result, a large body of research has been conducted to study the financial consequences of such security breaches in general and stock market reactions using the event study methodology in particular. Notwithstanding the significant contributions of the extant studies on the topic, inconsistencies could be observed about the existence and magnitude of shareholders’ reactions to announcements of security breaches by firms. As such, this paper addresses this gap through a meta-analysis of 63 studies (with a total of 20,936 instances of security breach announcements). The results suggest that a significant relationship exists between announcements of security breach and a drop in the experiencing firms’ stock returns. In addition, this relationship is impacted by the type of security breach, time of the security breach event, the country in which the experiencing firms operate, and the size of those firms. Collapse

Semantic filters: company type denial of service attack

Topics: IT security threat IT security IS failure IT risk management database system

Methods: meta analysis event study longitudinal research regression analysis method correlation analysis
The Association Between the Disclosure and the Realization of Information Security Risk Factors
PDF
2013 | Information Systems Research | Citations: 61
Authors: Wang, Tawei; Kannan, Karthik N.; Ulmer, Jackie Rees

Abstract: Firms often disclose information security risk factors in public filings such as ... Expand

Abstract: Firms often disclose information security risk factors in public filings such as 10-K reports. The internal information associated with disclosures may be positive or negative. In this paper, we evaluate how the nature of the disclosed security risk factors, believed to represent the firm's internal information regarding information security, is associated with future breach announcements reported in the media. For this purpose, we build a decision tree model, which classifies the occurrence of future security breaches based on the textual contents of the disclosed security risk factors. The model is able to accurately associate disclosure characteristics with breach announcements about 77% of the time. We further explore the contents of the security risk factors using text-mining techniques to provide a richer interpretation of the results. The results show that the disclosed security risk factors with risk-mitigation themes are less likely to be related to future breach announcements. We also investigate how the market interprets the nature of information security risk factors in annual reports. We find that the market reaction following the security breach announcement is different depending on the nature of the preceding disclosure. Thus, our paper contributes to the literature in information security and sheds light on how market participants can better interpret security risk factors disclosed in financial reports at the time when financial reports are released. Collapse

Semantic filters: company type denial of service attack

Topics: IT security threat information security risk data security Sarbanes–Oxley Act strategic management

Methods: decision tree classification financial report econometric modeling logistic regression machine learning
The impact of information security events on the stock value of firms: the effect of contingency factors
PDF
2011 | Journal of Information Technology | Citations: 97
Authors: Yayla, Ali Alper; Hu, Qing

Abstract: The stock market reactions to information technology (IT)-related events have of ... Expand

Abstract: The stock market reactions to information technology (IT)-related events have often been used as proxies to the value or cost of these events in the information systems literature. In this paper, we study the stock market reactions to information-security-related events using the event analysis methodology with consideration of the effects of a number of contingency factors, including business type, industry, type of breach, event year, and length of event window. We found that pure e-commerce firms experienced higher negative market reactions than traditional bricks-and-mortar firms in the event of security breach. We also found that denial of service attacks had higher negative impact than other types of security breaches. Finally, security events occurred in recent years were found to have less significant impact than those occurred earlier, suggesting that investors may have become less sensitive to the security events. Most interestingly, our analyses showed that the magnitude and longevity of security breaches vary with time across sub-samples. This raises some serious questions regarding the validity of analyzing only short-term stock market reactions as an indicator of the cost of security breaches, and in general, an indicator of the value of IT-related events. The implications of these results are discussed and potential future research directions are proposed. Collapse

Semantic filters: company type denial of service attack

Topics: IT security threat electronic commerce IT investment data security digital innovation

Methods: event study nonparametric test Student's t-test parametric test longitudinal research
Indirect Financial Loss of Phishing to Global Market

2008 | International Conference on Information Systems | Citations: 13
Authors: Leung, Alvin C M; Bose, Indranil

Abstract: This research studies the indirect financial impact of phishing announcements on ... Expand

Abstract: This research studies the indirect financial impact of phishing announcements on firm value. Using about 3,000 phishing announcements, we showed that phishing has a significantly negative impact on firms regardless of their size. We also discovered that place of incorporation, type of ownership, industry, and time are significant factors exacerbating the impact. Our research findings may give some insights to industrial practitioners about attitude of investors towards phishing. Compared to other similar event studies, our research has also made several significant breakthroughs. Firstly, we used the largest data set ever in prior event studies. Secondly, our research is the first to analyze global phenomena concerning phishing. Thirdly, we enhanced the robustness of a regression model by introducing the criterion of selection of best fit market index based on R square. We believe that our research can add value to the literature in the subjects of phishing research and event studies. Collapse

Semantic filters: company type denial of service attack

Topics: phishing organizational value data security database system electronic commerce

Methods: event study longitudinal research regression analysis method robust regression nonparametric test

Page 1 of 1

AIS11

Journals

Conferences

Semantic Filter

Found 4 articles

A meta-analysis of the factors influencing the impact of security breach announcements on stock returns of firms

The Association Between the Disclosure and the Realization of Information Security Risk Factors

The impact of information security events on the stock value of firms: the effect of contingency factors

Indirect Financial Loss of Phishing to Global Market