The economics of information security investment
ACM Transactions on Information and System Security (TISSEC)
Journal of Computer Security - IFIP 2000
Security in Computing (4th Edition)
Security in Computing (4th Edition)
Market reactions to E-business outsourcing announcements: an event study
Information and Management
International Journal of Electronic Commerce
Market reaction to patent infringement litigations in the information technology industry
Information Systems Frontiers
The impact of information security breaches: Has there been a downward shift in costs?
Journal of Computer Security
Part 2: emerging issues for secure knowledge management-results of a Delphi study
IEEE Transactions on Systems, Man, and Cybernetics, Part A: Systems and Humans
Editorial: Reporting security breaches - a risk to be avoided or responsibility to be embraced?
Digital Investigation: The International Journal of Digital Forensics & Incident Response
Risk and return of IT investment: evidence from SCM and CRM announcements
International Journal of Networking and Virtual Organisations
A novel approach to evaluate software vulnerability prioritization
Journal of Systems and Software
Hi-index | 0.00 |
Information security is a fundamental concern for corporations operating in today's digital economy. The number of firms disclosing items concerning their information security on reports filed with the U.S. Securities and Exchange Commission (SEC) has increased in recent years. A question then arises as to whether or not there is value to the voluntary disclosures concerning information security. Thus, the primary objective of this paper is to assess empirically the market value of voluntary disclosures of items pertaining to information security. Based on a sample of 1,641 disclosing and 19,266 non-disclosing firm-years in a cross-sectional pooled model, our primary findings provide strong evidence that voluntarily disclosing items concerning information security is associated positively with the market value of a firm. These findings are based on the use of a market-value relevance model, as well as a bid-ask spread analysis. The study's findings are robust to alternative statistical analyses. The findings also provide support for the signaling argument, which states that managers disclose information in a manner consistent with increased firm value. Finally, the study findings provide some insight into the strategic choice that firms make regarding voluntary disclosures about information security.