The Effects of Service Crises and Recovery Resources on Market Reactions: An Event Study Analysis on Data Breach Announcements
| Autor: | Sylvain Sénécal, Renaud Legoux, Yany Grégoire, Shahin Rasoulian |
|---|---|
| Rok vydání: | 2021 |
| Předmět: |
Finance
Service (business) Organizational Behavior and Human Resource Management Sociology and Political Science business.industry media_common.quotation_subject Event study Market reaction ComputingMilieux_LEGALASPECTSOFCOMPUTING Data breach Service recovery Type of service business Seriousness Information Systems media_common |
| Zdroj: | Journal of Service Research. 26:44-63 |
| ISSN: | 1552-7379 1094-6705 |
| Popis: | Building on the literatures on service failure and crisis seriousness, we develop a framework to understand the effects of a specific type of service crisis (i.e., data breaches) and organizational recovery resources on the reactions of the stock market. To do so, we conduct an event study analysis with a sample of 217 data breach announcements, as our empirical context. Our analyses reveal that a firm suffers from negative abnormal stock returns when either the outcome of the breach (e.g., the breach of financial data) or its causal process (e.g., hacker attack) indicates a high level of seriousness. Moreover, considering organizational recovery resources, we find that in the case of financial data breaches, age, size, profitability, liquidity, and brand familiarity are the primary resources that can help a firm’s recovery. For hacker attacks, these organizational recovery resources include size, profitability, and liquidity. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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