The Impact of Information Sharing Legislation on Cybersecurity Industry

2018 | International Conference on Information Systems | Citations: 0

Authors: Yang, Sun-Kyung; Kwon, Young-Jin; Lee, Sang-Yong Tom

Abstract: The overall impact of information sharing on firms’ cybersecurity investment dec ... Expand

Abstract: The overall impact of information sharing on firms’ cybersecurity investment decision has long been unexplored area, especially, due to nonexistence of epoch-making event. Here, we employ the legislation of Cybersecurity Information Sharing Act of 2015 (CISA) as a milestone, by which we are able to observe firms’ attitudinal changes toward investing in cybersecurity. We design a quasi-experiment where we set U.S. cybersecurity firms as experimental group (i.e., proxy for total investment in cybersecurity) and nonsecurity firms as control group. At full sample, our empirical findings suggest U.S. security firms’ overall Tobin’s Q increase after the legislation. Also, the results from propensity score matched samples verify the robustness of our findings. Our research has a contribution in that it finds the missing link between theoretically-explored prior literatues and the real-world example, allowing people to apprehend, at least, the impact of CISA itself, and even further, cybersecurity information sharing. Collapse

Topics: IT security information exchange organizational productivity legal context database system

Methods: experimental group propensity score matching quasi experiment longitudinal research Compustat

Theories: real options theory game theory