The Effect of Internet Security Breach Announcements on Market Value: Capital Market Reactions for Breached Firms and Internet Security Developers

By Huseyin Cavusoglu, Birendra K. Mishra, Srinivasan Raghunathan. International Journal of Electronic Commerce, 2004

788 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics, Information Systems

View Paper: https://www.semanticscholar.org/paper/2390d0ba96c89d60a15e1940c80a05f026508a39

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Citations in the corpus

A taxonomy of cyber-harms: Defining the impacts of cyber-attacks and understanding how they propagate (2018, background): “These approaches consider direct and indirect costs emanating from a cyber-attack for different harms [35–38].”
A model for evaluating IT security investments (2004, background): “We have estimated that compromised firms, on average, lost approximately 2.1% of their market values within two days surrounding security breaches [ 3 ].”
Do firms underreport information on cyber-attacks? Evidence from capital markets (2018, positive): “For instance, Cavusoglu et al. (2004) find data breaches have a statistically significant negative effect on stock prices.”
The Economic Incentives for Sharing Security Information (2005, background): “The potential costs of sharing security information can have a snowball effect, accruing from the resultant loss of market share and stock market value from negative publicity ( Cavusoglu et al. 2004, Campbell et al. 2003).”
The Economics of Privacy (2016, background): “In related work, Chellappa and Shivendu (2010) examine the trade-offs vendors and consumers face between privacy concerns and the personalization of services and products that the sharing of data may make possible, and Hui and Png (2006) consider the use of private information for unsolicited market”
Income, interdependence, and substitution effects affecting incentives for security investment (2006, background): “Schenk and Schenk (2002) illuminate incentives for reporting security breaches, Campbell et al. (2003) and Cavusoglu et al. (2004) consider the cost and impact of security breaches, and Schechter and Smith (2003) analyze the benefits of sharing information to prevent information security breaches.”
The Effect of a Data Breach Announcement on Customer Behavior: Evidence from a Multichannel Retailer (2018, background): “Cavusoglu, Mishra, and Raghunathan (2004) argue that the costs firms face as a result of security breaches include the transitory costs from lost business, decreased productivity, and stolen information; the litigation costs of containing the damages of data breach; and the costs from the loss of…”