Results

Found 20 articles

Clear filters

Please be Silent? Examining the Impact of Data Breach Response Strategies on the Stock Value

2020 | International Conference on Information Systems | Citations: 0
Authors: Masuch, Kristin; Greve, Maike; Trang, Simon

Abstract: Incidents of security breaches have increased and caused immense damage, affecti ... Expand

Abstract: Incidents of security breaches have increased and caused immense damage, affecting the stock price. Data breaches are particularly problematic as they have fatal consequences on customer relations. By applying recovery actions after a data breach, a company is able to mitigate these consequences. However, there is a controversy: The recovery actions offered to customers are perceived differently by the company's investors. While customer loyalty can be maintained, the value of the company's stock is damaged. This study examines this controversy through an event study. Real response strategies to data breaches are coded and their effects on investor behavior are examined on the basis of stock value. The results show that apologizing a data breach has harmful effects on investor behavior. The opposite might occur if the response is whitewashed. Further effects can be determined by the affected group and the year of the data breach. Collapse

Semantic filters: capital asset pricing model

Topics: data breach IT security threat database system organizational value internet technology

Methods: longitudinal research event study parametric test regression analysis method Student's t-test

Theories: capital asset pricing model
Adoption of Identity Theft Countermeasures and Its Short- and Long-Term Impact on Firm Value
PDF
2019 | Management Information Systems Quarterly | Citations: 0
Authors: Bose, Indranil; Leung, Alvin Chung Man

Abstract: Identity theft has impaired e-commerce. To combat the crime, many identity theft ... Expand

Abstract: Identity theft has impaired e-commerce. To combat the crime, many identity theft countermeasures (ITC) have been proposed. As investments in ITC are substantial and the benefits of such investments are intangible, companies are often hesitant to adopt such measures. This was the motivation for this study of the impact of 526 ITC adoption announcements on short- and long-term market value. The event study shows that such announcements result in positive market return of about U.S. $583 million around the date of announcement. Calendar-time portfolio analysis (CPA) is used for the long-term impact analysis and shows that the adoption of ITC generates positive and significant average monthly return up to 1.5% with control of market risk factors in two years. Subsampling analysis and interaction analysis show that U.S. listing, early ITC adoption, and two-factor authentication may moderate the market value of ITC adopters differently. A number of robustness checks (e.g., Heckman model, cross-sectional regression on Tobin’s Q, firm-specific risk factor analysis, subsampling analysis by ICT development, and analysis of security statements in annual reports) are performed. The research provides quantitative evidence of financial gain resulting from adoption of ITC and aspires to raise ITC awareness among industrial practitioners. Collapse

Semantic filters: capital asset pricing model

Topics: multi-factor authentication identity theft data security IT investment organizational value

Methods: longitudinal research event study cross sectional research robustness check nonparametric test

Theories: cue utilization theory capital asset pricing model
Organizational Signaling of Blockchain Investments: A Patent Filing Event Study

2019 | Americas Conference on Information Systems | Citations: 0
Authors: Bowman, Andrew; Steelman, Zach

Abstract: Blockchain technology has seen claims by many practitioners as one of the most ... Expand

Abstract: Blockchain technology has seen claims by many practitioners as one of the most disruptive technologies we have seen in decades. Investments in emerging technologies, such as blockchain, focus on innovations that may lead to competitive advantages and subsequently protecting those innovations from competitors through patents. Patents function as a means of signaling to the market the research directions that an organization is exploring along with the potential future value of the patent and related technology. This proposed study examines the market reactions to blockchain-based patents to help organizations determine the anticipated market value of these blockchain-based patents and strategically leverage such events for optimal market reaction. Collapse

Semantic filters: capital asset pricing model

Topics: blockchain innovation management cryptocurrency database system Bitcoin

Methods: event study statistical hypothesis test longitudinal research

Theories: capital asset pricing model lemon market theory signaling theory
Should You Disclose a Data Breach via Social Media? Evidence from US Listed Companies

2018 | HICSS | Citations: 0
Authors: Rosati, Pierangelo; Deeney, Peter; Cummins, Mark

Abstract: Data breaches represent one of the main concerns for executives across all secto ... Expand

Abstract: Data breaches represent one of the main concerns for executives across all sectors. Data breaches open a period of crisis for the affected firm and require them to disclose complex information to a variety of stakeholders in a timely and proper manner. This paper investigates the relationship between social media disclosure of a data breach and its cost, as proxied by the response of the affected firm’s stock price. Using an event study methodology on a sample of 32 data breaches from 29 US publicly-traded firms from 2011 to 2014, we find that social media disclosure exacerbates the negative stock price’s response to the announcement. However, such a negative association is contingent on firm’s visibility on traditional media with social media disclosure having a beneficial effect for low-visibility companies. Collapse

Semantic filters: capital asset pricing model

Topics: data breach social media Twitter customer service privacy

Methods: regression analysis method LexisNexis descriptive statistic longitudinal research event study

Theories: capital asset pricing model
Modern Advanced Analytics Platforms and Predictive Models for Stock Price Forecasting: IBM Watson Analytics Case
PDF
2017 | HICSS | Citations: 0
Authors: Faizullov, Ilias; Yablonsky, Sergey

Abstract: The primary purpose of this paper was to provide an in-depth analysis of the abi ... Expand

Abstract: The primary purpose of this paper was to provide an in-depth analysis of the ability of modern analytical platforms (using IBM Watson Analytics as an example) to generate predictive models for stock prices forecasting in comparison with traditional analytical econometric platforms and models. Series of stock predictive models based on the suggestions of IBM Watson Analytics have demonstrated results, which are superior to all other models. In terms of forecasting accuracy, they beat all models except for the Random Walk. The simulation has demonstrated high returns for most of the suggested models. Collapse

Semantic filters: capital asset pricing model

Topics: analytical information system spreadsheet open source website

Methods: simulation regression analysis method ordinary least square experiment econometric model

Theories: transaction cost economics capital asset pricing model
Price Shock Detection With an Influence-Based Model of Social Attention
PDF
2017 | ACM Transactions on Management Information Systems | Citations: 0
Authors: Xiao, Keli; Liu, Qi; Liu, Chuanren; Xiong, Hui

Abstract: There has been increasing interest in exploring the impact of human behavior on ... Expand

Abstract: There has been increasing interest in exploring the impact of human behavior on financial market dynamics. One of the important related questions is whether attention from society can lead to significant stock price movements or even abnormal returns. To answer the question, we develop a new measurement of social attention, named periodic cumulative degree of social attention, by simultaneously considering the individual influence and the information propagation in social networks. Based on the vast social network data, we evaluate the new attention measurement by testing its significance in explaining future abnormal returns. In addition, we test the forecasting ability of social attention for stock price shocks, defined by the cumulative abnormal returns. Our results provide significant evidence to support the intercorrelated relationship between the social attention and future abnormal returns. The outperformance of the new approach in predicting price shocks is also confirmed by comparison with several benchmark methods. Collapse

Semantic filters: capital asset pricing model

Topics: social network social media social influence open source database system

Methods: computational algorithm descriptive statistic literature study literature sample experiment

Theories: capital asset pricing model
Impact of IS Governance Certifications on Enterprise Risk

2015 | Americas Conference on Information Systems | Citations: 0
Authors: Hall, Laura; Leo, Gemoets; Mahmood, M Adam; Parra, Fernando

Abstract: Business enterprises can seek external audits of there IS Governance controls in ... Expand

Abstract: Business enterprises can seek external audits of there IS Governance controls in order to demonstrate that they are suitably designed and operating effectively in their supportive role of mitigating risk. SSAE 16based SOC assurances and ISO 27001 certifications are third-party validations a business can obtain to increase stakeholder’s trust on the organization’s ability to safeguard its assets and operations. This study proposes to examine the impact of these certifications on enterprise risks as perceived by external investors of publicly traded companies in the U.S. A Risk-Adjusted Marked Model is proposed to examine market valuation effects, as measured by abnormal returns, as well as systematic risk effects, as measured by pre-event and post-event beta changes. For further insight, a cross sectional analysis relating risk changes to different types of certifications and firm characteristics is also proposed. Collapse

Semantic filters: capital asset pricing model

Topics: IT governance competitive advantage COBIT risk management organizational productivity

Methods: cross sectional research Google news

Theories: resource based view of the firm capital asset pricing model
Do phishing alerts impact global corporations? A firm value analysis
PDF
2014 | Decision Support Systems | Citations: 12
Authors: Bose, Indranil; Leung, Alvin Chung Man

Abstract: Phishing is a form of online identity theft that is increasingly becoming a glob ... Expand

Abstract: Phishing is a form of online identity theft that is increasingly becoming a global menace. In this research, we analyze the impact of phishing alerts released in public databases on the market value of global firms. Using a sample of 1942 phishing alerts related to 259 firms in 32 countries, we show that the release of each phishing alert leads to a statistically significant loss of market capitalization that is at least US$ 411million for a firm. We propose a theoretical framework for analyzing the impact of threats on firm value, and determine that the negative investor reaction is strongly significant for alerts released in 2006–2007 and for those targeted to financial holding companies, and weakly significant for firms listed in the US. We derive and validate these results using a combination of event study, subsampling analysis, and cross-sectional regression analysis. Our research makes a contribution by providing a new model for conducting multi-country event studies. We also contribute to the information systems literature by quantifying the loss in market value caused by phishing, and provide compelling evidence to information security administrators of firms that urge them to adopt adequate countermeasures to prevent phishing attacks. Collapse

Semantic filters: capital asset pricing model

Topics: phishing organizational value database system website data security

Methods: event study regression analysis method cross sectional research longitudinal research nonparametric test

Theories: capital asset pricing model
Impact of Cloud Computing Adoption on Firm Stock Price – An Empirical Research

2014 | Americas Conference on Information Systems | Citations: 0
Authors: Mahmood, Adam M; Arslan, Faruk; Dandu, Jagadish; Udo, Godwin; Nicholas-Donald, Aurelia

Abstract: In this paper, we investigate how cloud computing adoption impacts publicly trad ... Expand

Abstract: In this paper, we investigate how cloud computing adoption impacts publicly traded 26 cloud-adopting companies’ stocks. In an effort to perform a valid assessment of a firm’s cloud adoption initiatives, we also evaluate the stocks of 26 companies, which did not adopt cloud computing and operate in the same industry with similar market capitalization. Our study differs from the previous studies in the area because it uses Fama-French three factor model to derive the stock abnormal returns for both adopters and non-adopters. Furthermore, given the announced risks of cloud computing in the literature, we analyzed the stock risk between adopters and non-adopters. Our preliminary analysis implies that businesses adopting cloud computing experience positive cumulative abnormal returns during the time the event was announced. Our research also indicates that both cloud adopting and non-cloud adopting companies suffer from higher stock risk during the announcement but this risk is not statistically significant. Collapse

Semantic filters: capital asset pricing model

Topics: cloud computing database system technology adoption price management computer data storage

Methods: Student's t-test parametric test event study longitudinal research computational algorithm

Theories: capital asset pricing model
Do green supply chain management initiatives impact stock prices of firms?
PDF
2012 | Decision Support Systems | Citations: 16
Authors: Bose, Indranil; Pal, Raktim

Abstract: Although firms have been taking green supply chain management (GSCM) initiatives ... Expand

Abstract: Although firms have been taking green supply chain management (GSCM) initiatives, it is not known whether they create value for firms. We analyze 104 announcements related to GSCM using an event study, and determine what causes statistically significant gain in stock prices for these firms. Manufacturing firms, firms with high R&D expenses, and early adopters show a strong increase in stock prices on the day of the announcement. At the same time, small firms, firms not well-known for taking green initiatives, as well as firms that are low in growth potential considerably surprise the market when they make such announcements. Collapse

Semantic filters: capital asset pricing model

Topics: supply chain management research and development accounting database system

Methods: nonparametric test longitudinal research event study parametric test statistical hypothesis test

Theories: capital asset pricing model

Page 1 of 2 Next

AIS11

Journals

Conferences

Semantic Filter

Found 20 articles

Please be Silent? Examining the Impact of Data Breach Response Strategies on the Stock Value

Adoption of Identity Theft Countermeasures and Its Short- and Long-Term Impact on Firm Value

Organizational Signaling of Blockchain Investments: A Patent Filing Event Study

Should You Disclose a Data Breach via Social Media? Evidence from US Listed Companies

Modern Advanced Analytics Platforms and Predictive Models for Stock Price Forecasting: IBM Watson Analytics Case

Price Shock Detection With an Influence-Based Model of Social Attention

Impact of IS Governance Certifications on Enterprise Risk

Do phishing alerts impact global corporations? A firm value analysis

Impact of Cloud Computing Adoption on Firm Stock Price – An Empirical Research

Do green supply chain management initiatives impact stock prices of firms?