IDEAS home Printed from https://ideas.repec.org/a/wly/riskan/v29y2009i9p1304-1316.html
   My bibliography  Save this article

Empirical Analysis of the Effects of Cyber Security Incidents

Author

Listed:
  • Ginger Davis
  • Alfredo Garcia
  • Weide Zhang

Abstract

We analyze the time series associated with web traffic for a representative set of online businesses that have suffered widely reported cyber security incidents. Our working hypothesis is that cyber security incidents may prompt (security conscious) online customers to opt out and conduct their business elsewhere or, at the very least, to refrain from accessing online services. For companies relying almost exclusively on online channels, this presents an important business risk. We test for structural changes in these time series that may have been caused by these cyber security incidents. Our results consistently indicate that cyber security incidents do not affect the structure of web traffic for the set of online businesses studied. We discuss various public policy considerations stemming from our analysis.

Suggested Citation

  • Ginger Davis & Alfredo Garcia & Weide Zhang, 2009. "Empirical Analysis of the Effects of Cyber Security Incidents," Risk Analysis, John Wiley & Sons, vol. 29(9), pages 1304-1316, September.
    • Handle: RePEc:wly:riskan:v:29:y:2009:i:9:p:1304-1316
    DOI: 10.1111/j.1539-6924.2009.01245.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1539-6924.2009.01245.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1539-6924.2009.01245.x?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
    ---><---

    References listed on IDEAS

    as
    1. Wang, Jiahui & Zivot, Eric, 2000. "A Bayesian Time Series Model of Multiple Structural Changes in Level, Trend, and Variance," Journal of Business & Economic Statistics, American Statistical Association, vol. 18(3), pages 374-386, July.
    2. Pei-Yu (Sharon) Chen & Lorin M. Hitt, 2002. "Measuring Switching Costs and the Determinants of Customer Retention in Internet-Enabled Businesses: A Study of the Online Brokerage Industry," Information Systems Research, INFORMS, vol. 13(3), pages 255-274, September.
    3. Yao, Yi-Ching, 1988. "Estimating the number of change-points via Schwarz' criterion," Statistics & Probability Letters, Elsevier, vol. 6(3), pages 181-189, February.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. J. S. Busby & B. Green & D. Hutchison, 2017. "Analysis of Affordance, Time, and Adaptation in the Assessment of Industrial Control System Cybersecurity Risk," Risk Analysis, John Wiley & Sons, vol. 37(7), pages 1298-1314, July.
    2. Natalie M. Scala & Allison C. Reilly & Paul L. Goethals & Michel Cukier, 2019. "Risk and the Five Hard Problems of Cybersecurity," Risk Analysis, John Wiley & Sons, vol. 39(10), pages 2119-2126, October.
    3. Luca Allodi & Fabio Massacci, 2017. "Security Events and Vulnerability Data for Cybersecurity Risk Estimation," Risk Analysis, John Wiley & Sons, vol. 37(8), pages 1606-1627, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Venkata Jandhyala & Stergios Fotopoulos & Ian MacNeill & Pengyu Liu, 2013. "Inference for single and multiple change-points in time series," Journal of Time Series Analysis, Wiley Blackwell, vol. 34(4), pages 423-446, July.
    2. Sugita, Katsuhiro & 杉田, 勝弘, 2006. "Time Series Analysis of the Expectations Hypothesis for the Japanese Term Structure of Interest Rates in the Presence of Multiple Structural Breaks," Discussion Papers 2006-15, Graduate School of Economics, Hitotsubashi University.
    3. Sugita, Katsuhiro & 杉田, 勝弘, 2006. "Bayesian Analysis of Dynamic Multivariate Models with Multiple Structural Breaks," Discussion Papers 2006-14, Graduate School of Economics, Hitotsubashi University.
    4. Ho-Chuan Huang & Wan-hsiu Cheng, 2005. "Tests of the CAPM under structural changes," International Economic Journal, Taylor & Francis Journals, vol. 19(4), pages 523-541.
    5. Luis Aguiar & Jörg Claussen & Christian Peukert, 2018. "Catch Me If You Can: Effectiveness and Consequences of Online Copyright Enforcement," Information Systems Research, INFORMS, vol. 29(3), pages 656-678, September.
    6. Young Hoon Lee, 2009. "The Impact of Postseason Restructuring on the Competitive Balance and Fan Demand in Major League Baseball," Journal of Sports Economics, , vol. 10(3), pages 219-235, June.
    7. Wang, Lu & Zhou, Ruichao & Wu, Jianhong, 2021. "Determining the number of breaks in large dimensional factor models with structural changes," Economics Letters, Elsevier, vol. 199(C).
    8. John M. Maheu & Stephen Gordon, 2008. "Learning, forecasting and structural breaks," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 23(5), pages 553-583.
    9. Chris Forman & Pei-yu Chen, 2003. "Network Effects and Switching Costs in the Market for Routers and Switches," Working Papers 03-03, NET Institute, revised Oct 2003.
    10. Hayley Jang & Young Hoon Lee & Rodney Fort, 2019. "Winning In Professional Team Sports: Historical Moments," Economic Inquiry, Western Economic Association International, vol. 57(1), pages 103-120, January.
    11. Devi, P. Indira & Shanmugam, K.R. & Jayasree, M.G., 2012. "Compensating Wages for Occupational Risks of Farm Workers in India," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 67(2), pages 1-12.
    12. Gil-Alana, Luis A. & Dadgar, Yadollah & Nazari, Rouhollah, 2020. "An analysis of the OPEC and non-OPEC position in the World Oil Market: A fractionally integrated approach," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 541(C).
    13. Gábor Kézdi & Gergely Csorba, 2013. "Estimating Consumer Lock-In Effects from Firm-Level Data," Journal of Industry, Competition and Trade, Springer, vol. 13(3), pages 431-452, September.
    14. Altansukh, Gantungalag & Becker, Ralf & Bratsiotis, George J. & Osborn, Denise R., 2017. "What is the Globalisation of Inflation?," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 74, pages 1-27.
    15. Chetan A. Jhaveri & Jitendra M. Nenavani, 2020. "Evaluation of eTail Services Quality: AHP Approach," Vision, , vol. 24(3), pages 310-319, September.
    16. Boldea, Otilia & Hall, Alastair R., 2013. "Estimation and inference in unstable nonlinear least squares models," Journal of Econometrics, Elsevier, vol. 172(1), pages 158-167.
    17. Slawomir Czarniewski, 2014. "Building Customer Value in Relationship Marketing," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 4(4), pages 88-94, October.
    18. Lee, Chung-Bow, 1996. "Nonparametric multiple change-point estimators," Statistics & Probability Letters, Elsevier, vol. 27(4), pages 295-304, May.
    19. Mikko Hänninen & Anssi Smedlund, 2021. "Same Old Song with a Different Melody: The Paradox of Market Reach and Financial Performance on Digital Platforms," Journal of Management Studies, Wiley Blackwell, vol. 58(7), pages 1832-1868, November.
    20. Kayhan, Selim & Adiguzel, Uğur & Bayat, Tayfur & Lebe, Fuat, 2010. "Causality Relationship between Real GDP and Electricity Consumption in Romania (2001-2010)," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(4), pages 169-183, December.

    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:wly:riskan:v:29:y:2009:i:9:p:1304-1316. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1111/(ISSN)1539-6924 .

    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.