How Do Investors Perceive the Materiality of Data Security Incidents

Autor:	Ahmad H. Juma'h, Yazan Alnsour
Rok vydání:	2021
Předmět:	Materiality (auditing) Information Systems and Management Aesthetics Strategy and Management Data security Sociology Management Science and Operations Research Business and International Management Computer Science Applications
Zdroj:	Journal of Global Information Management. 29:1-32
ISSN:	1533-7995 1062-7375
DOI:	10.4018/jgim.20211101.oa4
Popis:	Data security incidents are continually increasing; hackers, governments, and other actors increasingly attempt to gain unauthorized access to confidential data. Information Systems (IS) users are becoming more vulnerable to the risks of data breaches. Many stakeholders perceive cybersecurity incidents as indicators of firms' operational and technological internal deficiencies. Previous research has revealed that investors react negatively to data breaches, yet little is known about investors' reactions to material data security incidents. Using a sample of 232 data security incidents for 132 publicly traded companies in the United States, we applied an event study methodology to discern investors' reactions to material versus immaterial incidents. We also use multivariate regression and time-to-event analysis to examine what determines the degree of investors' reactions, considering several intervals around the event day. Our results show that investors perceive material data security incidents as a deficiency of breached companies in comparison to immaterial incidents.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::9b102ec00a64a5ee5bbb10884739f74a https://doi.org/10.4018/jgim.20211101.oa4 Zobrazit plný text záznamu