Conference proceeding
Firm Actions Toward Data Breach Incidents and Firm Equity Value: An Empirical Study
Proceedings of the 50th Annual Hawaii International Conference on System Sciences, pp.4957-4966
01/01/2017
Abstract
Managing information resources including protecting the privacy of customer data plays a critical role in most firms. Data breach incidents may be extremely costly for firms. In the face of a data breach event, some firms are reluctant to disclose information to the public. Firm may be concerned with the potential drop in the market value following the revelation of a data breach. This paper examines the impact of data breach incidents to the firm's market value/equity value, and explores the possibility that certain firm behaviors may reduce the cost of the incidents. We use regression analysis to identify the factors that affect cumulative abnormal stock return (CAR). Our results indicate that when data breach happens, firms not only should notify customers or the public timely, but also try to control the amount of information disclosed. These findings should provide corporate executives with guidance on managing public disclosure of data breach incidents.
Details
- Title: Subtitle
- Firm Actions Toward Data Breach Incidents and Firm Equity Value: An Empirical Study
- Creators
- Ziqian Song - Virginia TechG. Alan Wang - Virginia TechWeiguo Fan - Virginia Tech
- Contributors
- T X Bui (Editor)R Sprague (Editor)
- Resource Type
- Conference proceeding
- Publication Details
- Proceedings of the 50th Annual Hawaii International Conference on System Sciences, pp.4957-4966
- Publisher
- HICSS
- Number of pages
- 10
- Grant note
- 71531013 / Natural Science Foundation of China; National Natural Science Foundation of China (NSFC) Center for Business Intelligence and Analytics at Virginia Tech (CBIA)
- Language
- English
- Date published
- 01/01/2017
- Academic Unit
- Business Analytics
- Record Identifier
- 9984380513302771
Metrics
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