IDEAS home Printed from https://ideas.repec.org/a/taf/uipsxx/v8y2012i4p27-55.html
   My bibliography  Save this article

Stock Market Response to Information Security Breach: A Study Using Firm and Attack Characteristics

Author

Listed:
  • Saini Das
  • Arunabha Mukhopadhyay
  • Manoj Anand

Abstract

The recent global surge in information security breaches emphasizes the importance of their impact determination for proper risk assessment. In this paper we used event study to compute the cumulative abnormal response (CAR) of the stock market to publicly announced breaches on a sample of Indian and US firms. We also used linear regression and moderation analysis to identify the factors that affect CAR individually and in combination with each other. From regression analysis, firm type, firm size and Damage Potency of the attack emerged as factors that individually impacted CAR. Further, moderation analysis revealed that Denial of Service attacks on e-commerce companies and information theft attacks on BFSI companies generated significantly negative CAR. We also observed that if a subsidiary company is breached, then the parent's stock market performance is not significantly negatively impacted. However, if a vendor suffers a breach, then the client is significantly negatively affected in the stock market.

Suggested Citation

  • Saini Das & Arunabha Mukhopadhyay & Manoj Anand, 2012. "Stock Market Response to Information Security Breach: A Study Using Firm and Attack Characteristics," Journal of Information Privacy and Security, Taylor & Francis Journals, vol. 8(4), pages 27-55, October.
    • Handle: RePEc:taf:uipsxx:v:8:y:2012:i:4:p:27-55
    DOI: 10.1080/15536548.2012.10845665
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/15536548.2012.10845665
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/15536548.2012.10845665?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Martin Eling & Michael McShane & Trung Nguyen, 2021. "Cyber risk management: History and future research directions," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 24(1), pages 93-125, March.
    2. Md. Hamid Uddin & Md. Hakim Ali & Mohammad Kabir Hassan, 2020. "Cybersecurity hazards and financial system vulnerability: a synthesis of literature," Risk Management, Palgrave Macmillan, vol. 22(4), pages 239-309, December.
    3. Michael McShane & Trung Nguyen, 0. "Time-varying effects of cyberattacks on firm value," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 0, pages 1-36.
    4. Masoud, Najeb & Al-Utaibi, Ghassan, 2022. "The determinants of cybersecurity risk disclosure in firms’ financial reporting: Empirical evidence," Research in Economics, Elsevier, vol. 76(2), pages 131-140.
    5. Sepideh Ebrahimi & Kamran Eshghi, 2022. "A meta-analysis of the factors influencing the impact of security breach announcements on stock returns of firms," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(4), pages 2357-2380, December.
    6. Michael McShane & Trung Nguyen, 2020. "Time-varying effects of cyberattacks on firm value," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 45(4), pages 580-615, October.
    7. Arunabha Mukhopadhyay & Samir Chatterjee & Kallol K. Bagchi & Peteer J. Kirs & Girja K. Shukla, 2019. "Cyber Risk Assessment and Mitigation (CRAM) Framework Using Logit and Probit Models for Cyber Insurance," Information Systems Frontiers, Springer, vol. 21(5), pages 997-1018, October.
    8. Anum Khan & Muhammad Shujaat Mubarik & Navaz Naghavi, 2023. "What matters for financial inclusions? Evidence from emerging economy," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(1), pages 821-838, January.
    9. Mohammad Ashraful Ferdous Chowdhury & Mohammad Abdullah & Nurun Nowshin Chowdhury Nazia & Debarshi Roy, 2023. "The nonlinear and threshold effects of IT investment on the banking sector of Bangladesh," Economic Change and Restructuring, Springer, vol. 56(6), pages 4253-4283, December.
    10. Syed Emad Azhar Ali & Fong-Woon Lai & Rohail Hassan & Muhammad Kashif Shad, 2021. "The Long-Run Impact of Information Security Breach Announcements on Investors’ Confidence: The Context of Efficient Market Hypothesis," Sustainability, MDPI, vol. 13(3), pages 1-27, January.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:uipsxx:v:8:y:2012:i:4:p:27-55. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/uips .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.