TY - GEN
T1 - The business value of engaging in counter-breach initiatives
AU - Havakhor, Taha
AU - Zhang, Tianjian
AU - Hammer, Bryan
N1 - Publisher Copyright:
© 2018 Association for Information Systems. All rights reserved.
PY - 2018
Y1 - 2018
N2 - Facing an increasing information security threat, companies react by engaging in various counter-breach initiatives. The business value of such initiatives is under-studied. This paper utilizes an organizational legitimacy view, overlaid by behavioral theory of the firm (BTOF), to examine whether counter-breach initiatives are rewarded by the market, and whether the magnitude of such rewards depends on the institutional environment. Based on a dataset of 3, 212 observations from 2005 to 2015, and focusing on counter-breach initiatives that are revealed in public announcements and/or emphasized in annual reports, the results unfold an overall significant positive effect of counter-breach initiatives on Tobin's q and future return on assets. The findings reveal that this effect is more pronounced for breached firms in low-risk industries and un-breached firms in high-risk industries. This paper contributes to the information security literature by showing the positivity, as well as institutional heterogeneity, of the business value of counter-breach initiatives.
AB - Facing an increasing information security threat, companies react by engaging in various counter-breach initiatives. The business value of such initiatives is under-studied. This paper utilizes an organizational legitimacy view, overlaid by behavioral theory of the firm (BTOF), to examine whether counter-breach initiatives are rewarded by the market, and whether the magnitude of such rewards depends on the institutional environment. Based on a dataset of 3, 212 observations from 2005 to 2015, and focusing on counter-breach initiatives that are revealed in public announcements and/or emphasized in annual reports, the results unfold an overall significant positive effect of counter-breach initiatives on Tobin's q and future return on assets. The findings reveal that this effect is more pronounced for breached firms in low-risk industries and un-breached firms in high-risk industries. This paper contributes to the information security literature by showing the positivity, as well as institutional heterogeneity, of the business value of counter-breach initiatives.
KW - Annual report
KW - Counter-breach initiative
KW - Information security
KW - Public announcement
KW - Tobin's q
UR - https://www.scopus.com/pages/publications/85054252731
M3 - Conference contribution
AN - SCOPUS:85054252731
SN - 9780996683166
T3 - Americas Conference on Information Systems 2018: Digital Disruption, AMCIS 2018
BT - Americas Conference on Information Systems 2018
PB - Association for Information Systems
T2 - 24th Americas Conference on Information Systems 2018: Digital Disruption, AMCIS 2018
Y2 - 16 August 2018 through 18 August 2018
ER -