The Market Value and Reputational Effects from Lost Confidential Information

2015 ◽  
Vol 5 (4) ◽  
Author(s):  
Joseph K. Tanimura ◽  
Eric W. Wehrly
Keyword(s):  
Information Security ◽  
Market Value ◽  
Direct Costs ◽  
Publicly Traded ◽  
Confidential Information ◽  
Publicly Traded Companies ◽  
Security Breaches ◽  
Customer Information ◽  
Employee Information

According to many business publications, firms that experience information security breaches suffer substantial reputational penalties. This paper examines incidents in which confidential information, for a firms customers or employees, is stolen from or lost by publicly traded companies. Firms that experience such breaches suffer statistically significant losses in the market value of their equity. On the whole, the data indicate that these losses are of similar magnitudes to the direct costs. Thus, direct costs, and not reputational penalties, are the primary deterrents to information security breaches. Contrary to many published assertions, on average, firms that lose customer information do not suffer reputational penalties. However, when firms lose employee information, we find significant reputational penalties.

scholarly journals Corporate governance and corporate investment: an exploratory research in the Brazilian publicly traded companies listed in Bovespa

2011 ◽  
Vol 9 (1) ◽  
pp. 545-557
Author(s):  
Nádia Sousa ◽  
Flávia Zóboli Dalmácio
Keyword(s):  
Corporate Governance ◽  
Institutional Investors ◽  
Market Value ◽  
Institutional Investor ◽  
Capital Cost ◽  
Exploratory Research ◽  
Statistical Relation ◽  
Publicly Traded ◽  
Publicly Traded Companies ◽  
Governance Practices

This paper aims to study the influence of Corporate Governance practices in the institutional decision to invest. It was developed a Governance Index (iGov), a descending rank was prepared and a test was applied to check if the companies in the first 25% of this rank have the highest number of institutional investors among their biggest investors than the companies of the last 25%. For the validation of IGov it was tested if the companies with the best marks present highest Returns, lowest Capital Cost, highest Market Value, and highest Competiveness within the sector, lowest Beta, highest EVA® and lowest Share concentration. It has been proved that the best Corporate Governance practices do not have any statistical relation with the presence of more Institutional Investor.

Investigating the Impact of Publicly Announced Information Security Breaches on Three Performance Indicators of the Breached Firms

2010 ◽  
pp. 2141-2162
Author(s):  
Myung Ko ◽  
Kweku-Muata Osei-Bryson ◽  
Carlos Dorantes
Keyword(s):  
Information Security ◽  
Stock Market ◽  
Financial Performance ◽  
Organizational Performance ◽  
Market Value ◽  
Sampling Methodology ◽  
Security Breaches ◽  
Stock Market Investors ◽  
One Year ◽  
The Impact

This article examines the impact of information security breaches on organizational performance. Until now, there have been only a few empirical academic studies that have investigated this issue and they have investigated information security breaches with the focus on the short-term impact on the market value of the firm. This study offers an alternate approach to investigate this issue as it explores the impact of breaches on financial performance of the firm, one year after the breach. Using a “matched sampling” methodology, we explored the impact of each type of breach (i.e., confidentiality, integrity, and availability) and also by IT intensity and size. Our results suggest that the direction of the impact (i.e., positive, negative) is dependent on the type of security breaches and also the impact of IT intensive firms is different from non-IT intensive firms. Our study also includes some important implications for managers and stock market investors.

scholarly journals The impact of repeated data breach events on organisations’ market value

2016 ◽  
Vol 24 (1) ◽  
pp. 73-92 ◽  
Author(s):  
Daniel Schatz ◽  
Rabih Bashroush
Keyword(s):  
Information Security ◽  
Economic Impact ◽  
Investment Decisions ◽  
Market Value ◽  
Current Data ◽  
Published Data ◽  
Content Type ◽  
Security Breaches ◽  
Short Period ◽  
The Impact

Purpose – This study aims to examine the influence of one or more information security breaches on an organisation’s stock market value as a way to benchmark the wider economic impact of such events. Design/methodology/approach – An event studies-based approach was used where a measure of the event’s economic impact can be constructed using security prices observed over a relatively short period of time. Findings – Based on the results, it is argued that, although no strong conclusions could be made given the current data constraints, there was enough evidence to show that such correlation exists, especially for recurring security breaches. Research limitations/implications – One of the main limitations of this study was the quantity and quality of published data on security breaches, as organisations tend not to share this information. Practical implications – One of the challenges in information security management is assessing the wider economic impact of security breaches. Subsequently, this helps drive investment decisions on security programmes that are usually seen as cost rather than moneymaking initiatives. Originality/value – This study envisaged that as more breach event data become more widely available because of compliance and regulatory changes, this approach has the potential to emerge as an important tool for information security managers to help support investment decisions.

Boards of directors in Russian publicly traded companies: the gender aspect

2018 ◽  
pp. 142-155 ◽  
Author(s):  
T. A. Garanina ◽  
A. A. Muravyev
Keyword(s):  
Boards Of Directors ◽  
Company Performance ◽  
Corporate Boards ◽  
Publicly Traded ◽  
Publicly Traded Companies ◽  
Representation Of Women ◽  
Female Directors ◽  
Female Director ◽  
Gender Aspect ◽  
Longitudinal Dataset

This article studies the gender composition of corporate boards of Russian companies, including its relation to company performance. The analysis is based on a unique longitudinal dataset of virtually all Russian companies whose shares were traded on the stock market in 1998-2014. It shows a relatively small representation of women, just 12% of all the seats, while about 40% of the companies did not have any female director. At the same time, both the share of companies that appoint female directors and the share of female directors on boards show a clear upward trend. The econometric analysis suggests a positive link between the presence of female directors on boards and company performance, especially when firms appoint several, rather than one, female directors.

How Bad is it? – A Branching Activity Model to Estimate the Impact of Information Security Breaches

2013 ◽  
Author(s):  
Russell Cameron Thomas ◽  
Marcin Antkiewicz ◽  
Patrick Florer ◽  
Suzanne Widup ◽  
Matthew Woodyard
Keyword(s):  
Information Security ◽  
Activity Model ◽  
Security Breaches ◽  
The Impact

Valuation of Stock Options of Non‐Publicly Traded Companies

2007 ◽  
Vol 22 (1) ◽  
pp. 11-20 ◽  
Author(s):  
William R. Cron ◽  
Randall B. Hayes
Keyword(s):  
Stock Options ◽  
Publicly Traded ◽  
Publicly Traded Companies
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