The financial impacts of information systems security breaches on publicly traded companies: reactions of different sectors

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Cansu Tayaksi ◽  
Erhan Ada ◽  
Yigit Kazancoglu ◽  
Muhittin Sagnak
Keyword(s):  
Information Systems ◽  
Negative Impact ◽  
Abnormal Returns ◽  
Information Systems Security ◽  
Content Type ◽  
Publicly Traded Companies ◽  
Security Breaches ◽  
Systems Security ◽  
Significant Negative Impact ◽  
Financial Impacts

PurposeToday, information systems and technology provides a wide set of tools for companies to increase the efficiency of their businesses. Although technology offers many benefits to businesses, it also brings risks as the information systems security breaches. Security breaches and their financial impact is a constant concern of the researchers and practitioners. This paper explores information systems breaches and their financial impacts on the publicly traded companies in different sectors.Design/methodology/approachAfter a comprehensive data collection process, data from 192 events are analyzed by employing Event Study Methodology and a comparison of the results between the four highly affected sectors (Consumer Goods, Technology, Financial and Communications) is presented. The abnormal returns on the prices of stocks after the events are calculated with the Market Model. Also, the results of the Market Adjusted Model and Mean Adjusted Model are presented to support the results.FindingsWhile information systems security breaches have a significant negative impact on the Financials and the Technology sectors for all the event windows in the study ([−5, 0], [−5, 1], [−5, 5], and [−5, 10]), the significant negative impact is observed only on the [−5, 5] and [−5, 10] event windows for the Consumer Goods sector. No significant negative impact is observed in the Communications sector, in fact, the cumulative abnormal returns are positive for this sector.Originality/valueThe contribution of this paper to provide evidence about the financial impacts of the information systems breaches for businesses in different sectors. While there are studies that have previously focused on the information systems breaches and their financial impacts on businesses, to the best of our knowledge, this is the first study that compares this effect between the four highly impacted sectors. With a relatively larger sample size and broader event windows than the past studies in the literature, statistical evidence is provided to managers to justify their investments in information security and build preventive measures to secure the market value of their firms.

Disassociations in Security Policy Lifecycles

2015 ◽  
Vol 9 (1) ◽  
pp. 62-77 ◽  
Author(s):  
Michael Lapke ◽  
Gurpreet Dhillon
Keyword(s):  
Information Systems ◽  
Security Policy ◽  
Policy Formulation ◽  
Information Systems Security ◽  
Security Breaches ◽  
High Profile ◽  
Systems Security ◽  
Is Security ◽  
Two Sides

Continued high profile security breaches indicate that Information Systems Security remains a significant problem within organizations. The authors argue that one of the major contributors to this ongoing problem is a disconnect between security policy formulation and implementation. This disconnect can lead to a failure of policy. This paper is aimed at understanding the disconnect by analyzing the meanings that are attributed to policy formulation and implementation by the stakeholders involved in the process. A case study was carried out and a “snapshot in time” of the lifecycle of IS Security Policy formulation at the organization under study demonstrated that a disconnect is evident between these two sides of security policy.

Information systems security practices in social software applications

2017 ◽  
Vol 69 (2) ◽  
pp. 131-157
Author(s):  
Suraya Ika Tamrin ◽  
Azah Anir Norman ◽  
Suraya Hamid
Keyword(s):  
Information Systems ◽  
Security Policy ◽  
Journal Citation Report ◽  
Social Software ◽  
Information Systems Security ◽  
Content Type ◽  
User Behaviour ◽  
Publish Or Perish ◽  
Software Application ◽  
Systems Security

Purpose The purpose of this paper to investigate the current information systems security (ISS) practices of the social software application (SSA) users via the internet. Design/methodology/approach The paper opted for a systematic literature review survey on ISS and its practices in SSAs between 2010 and 2015. The study includes a set of 39 papers from among 1,990 retrieved papers published in 35 high-impact journals. The selected papers were filtered using the Publish or Perish software by Harzing and Journal Citation Report (JCR) with an inclusion criterion of least one citation per article. Findings The practice of ISS is driven by the need to protect the confidentiality, integrity, and availability of the data from being tampered. It is coherent with the current practice as reported by many researchers in this study. Four important factors lead to the ISS practice in SSA: protection tools offered, ownership, user behaviour, and security policy. Practical implications The paper highlights the implication of successful ISS practices is having clear security purpose and security supported environment (user behaviour and security protection tools) and governance (security policy and ownership) protection tools offered, ownership, user behaviour, and security policy towards ISS practice by the users. Originality/value This paper fulfils an identified need to study how to enable ISS practice.

Information Systems Security

2008 ◽  
pp. 195-230
Author(s):  
Frederick Ip ◽  
Yolande E. Chan
Keyword(s):  
Information Systems ◽  
Organizational Performance ◽  
Security Threats ◽  
Educational Organizations ◽  
Information Systems Security ◽  
Security Breaches ◽  
Financial Firms ◽  
Systems Security ◽  
Is Security ◽  
Perceived Security

This study assists organizations and researchers in examining investments in IS security. A questionnaire was developed and administered to managers in Canadian financial firms and educational organizations. The survey examined security threats and the countermeasures adopted by organizations to prevent and respond to security breaches. Data gathered were used to investigate the relationships between investment in security, perceived security, and organizational performance.

The effectiveness of web advertising, its legal regulation and the problem of information systems security

2020 ◽  
Vol 4 (3(12)) ◽  
pp. 1-15
Author(s):  
Samira Ilgarovna Proshkina ◽  
Keyword(s):  
Information Systems ◽  
Computational Models ◽  
Evolutionary Dynamics ◽  
Legal Regulation ◽  
Information Systems Security ◽  
Systematic Analysis ◽  
Web Advertising ◽  
Systems Security ◽  
Business Structures ◽  
Display Location

The work is devoted to an urgent problem — the study of the evolutionary dynamics of web advertising, its assessment and effectiveness, as well as the problem of legal support and security of information systems. The goal is a systematic analysis of web advertising in an unsafe information field, its relevance and criteria for assessing marketing efforts, minimizing risks, maximizing additional profits and image. Research hypothesis — the effectiveness of web advertising is determined by the form of advertising, place of display, location of the block, model of calculation of the advertising campaign. An approach based on the establishment of preferences, partnership between the state and business structures is emphasized. It takes into account the COVID-19 pandemic, a slowdown in the pace and features of the evolution of business companies in self-isolation. The subtasks of influence on the advertising efficiency of the site’s features and web advertising are highlighted. A comprehensive analysis of information and logical security and computational models of web advertising companies was also carried out.

Three strikes and you are out?

2017 ◽  
Vol 10 (4) ◽  
pp. 417-429 ◽  
Author(s):  
Michael Carriger
Keyword(s):  
Negative Impact ◽  
Univariate Analysis ◽  
Market Valuation ◽  
Financial Health ◽  
Content Type ◽  
Financial Measures ◽  
Significant Negative Impact ◽  
Three Strikes ◽  
Underlying Disorder ◽  
The Impact

Purpose Much has been written in both the management and finance literatures about the impact of downsizing on the financial health and market valuation of companies. However, surprisingly little attention has been paid to the frequency of downsizing and the impact of frequent downsizings. The purpose of this paper is to look at trends in downsizing, asking the question are companies that downsize once more likely to downsize again. The paper also looks at the impact of frequent downsizing, asking the question are frequent downsizers differentially impacted compared to less frequent downsizers. Design/methodology/approach Companies that appeared on the Fortune 500 in 2014 and were also on the list in 2008 were assessed for the impact of repeat downsizings on financial measures (profitability, efficiency, debt, and revenue) and market valuation. A trend analysis was conducted to assess the trend in downsizing and repeated downsizing from 2008 through 2014. A series of univariate analysis of variances were conducted to assess the impact of repeated downsizings on the financial and market valuation indicators. Findings Findings indicate that companies that downsize between 2008 and 2009 were more likely to downsize again in future years. And this repeat downsizing happened at a higher rate than would be expected by the percentage of companies that initially downsized. Findings also indicate that multiple downsizings had a significantly negative impact on the company’s financial performance as measured by two profitability ratios (return on assets and return on investment) and a borderline significant negative impact on the company’s market valuation as measured by stock equity, regardless of industry or initial financial health of the company. Originality/value Two competing theories were considered and the evidence found here support both. However, the “band-aid solution” theory, that downsizing may function as a band-aid addressing the symptoms that lead to the downsizing but not the underlying disorder or cause may be a more parsimonious explanation for the results here. It is hoped that these findings will inform both scholars and practitioners, giving both a clearer picture of the impact of multiple downsizings on corporate performance.

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