IRMA-International.org: Creator of Knowledge
Information Resources Management Association
Advancing the Concepts & Practices of Information Resources Management in Modern Organizations

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

Investigating the Impact of Publicly Announced Information Security Breaches on Three Performance Indicators of the Breached Firms
View Sample PDF
Author(s): Myung Ko (The University of Texas at San Antonio, USA), Kweku-Muata Osei-Bryson (Virginia Coomonwealthe University, USA)and Carlos Dorantes (The University of Texas at San Antonio, USA)
Copyright: 2009
Volume: 22
Issue: 2
Pages: 21
Source title: Information Resources Management Journal (IRMJ)
Editor(s)-in-Chief: George Kelley (University of Massachusetts, USA)
DOI: 10.4018/irmj.2009040101

Purchase


Abstract

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.

Related Content

Zhi Chen, Jie Liu, Ying Wang. © 2024. 19 pages.
Abida Ellahi, Yasir Javed, Mohammad Farooq Jan, Zaid Sultan. © 2024. 20 pages.
Ping Zhang, Changrong Lv, Qingying Li, Bori Cong, Jian Liu. © 2024. 19 pages.
Andrew J. Setterstrom, Jack T. Marchewka. © 2024. 22 pages.
Lai Xin, Liang Chang Sheng, Jiayu Feng, Hengyan Zhang. © 2024. 17 pages.
Toby Chau, Helen Lv Zhang, Yuyue Gui, Man Fai Lau. © 2024. 13 pages.
Xiaotong Li, Young Sook Lee. © 2024. 16 pages.
Body Bottom