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

Abstract

Purpose -In this study, we examined the influence of one or more information security breaches on an organization's stock market value as a way to benchmark the wider economic impact of such events. Design/Methodology/approach -We used an event studies based approach 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, we argue 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 organizations 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 -We envisage that as more breach event data become more widely available due to compliance and regulatory changes, this approach has the potential to emerge as an important tool for information security managers to help support investment decisions.

The Effect of a Data Breach Announcement on Customer Behavior: Evidence from a Multichannel Retailer

“…Yet there is virtually no study that uses actual customer transaction data and empirically examines the effect of a DBA on customer behavior. Although a few studies have examined the impact of security breaches on firm value (e.g., Schatz and Bashroush 2016), no study has examined the impact of a DBA on customer behavior. We attempt to fill this gap in the literature.…”

Cyber attacks on hospitality sector: stock market reaction

“…A large number of studies deal with information security breaches and cyber security (Schatz and Bashroush, 2016), but there is still a limited amount of literature related to the tourism and hospitality sector on this field. Nevertheless, specialized literature on the tourism industry emphasizes that the ICT strategy may have a direct impact on the financial performance of a hotel (Tavitiyaman et al , 2012).…”

Competitiveness in ODL from Stakeholders’ Perspective: A Review and Research Agenda

“…But, competitiveness measurement is a complex activity (Crouch & Ritchie, 1999). There have been efforts to measure it in previous studies either with the help of financial measures (Barrett, Davidson, Prabhu, & Vargo, 2015;Krell & Matook, 2009;Prescott, 2014;Sigalas, Economou, & Georgopoulos, 2013) or non financial measure such as creative process of product/service development, Product/service quality, customer responsiveness reflected through customer retention/attraction, cost saving/effectiveness, market differentiation, strategic planning, core competence, and social responsibility (Agha, Alrubaiee, & Jamhour, 2012;Al-alak & Tarabieh, 2011;Barrett et al, 2015;Diab, 2014;Epetimehin, 2011;Heywood & Kenley, 2008;Kuettner & Schubert, 2012;Majeed, 2011;Matikiti, Afolabi, & Smith, 2012;Prescott, 2014;Schatz & Bashroush, 2016;Sigalas et al, 2013;Vahid et al, 2013;Kasasbeh, Harada, & Noor, 2017), which need to be identified in the specific context for better understanding to the researchers and practitioners, in future.…”