Stock market reactions to favorable and unfavorable information security events: A systematic literature review

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dc.contributor.authorAli, Syed Emad Azharen
dc.contributor.authorLai, Fong-Woonen
dc.contributor.authorDominic, P. D. D.en
dc.contributor.authorBrown, Nicholas Jamesen
dc.contributor.authorLowry, Paul Benjaminen
dc.contributor.authorAli, Rao Faizanen
dc.date.accessioned2022-01-09T21:12:44Zen
dc.date.available2022-01-09T21:12:44Zen
dc.date.issued2021-11-01en
dc.date.updated2022-01-09T21:12:40Zen
dc.description.abstractThe rapid digital transformations across every industry sector, accelerated partly due to the COVID-19 pandemic, have increased organizations’ use of information systems for operational and strategic purposes. These organizational responses have led to a confluence of digital, biological, and physical technologies that are revolutionizing business practices and workflows. But accompanying the pervasive use of digital technologies and the evolutionary nature of digital assets, is a shifting world of cyberattacks and information security (ISec) cybercrimes. Dynamic cybercrimes make it increasingly difficult for managers and researchers to anticipate the types, magnitude, and severity of future information security (ISec) breaches. Thus, we perform a systematic literature review (SLR) that explores, gathers, and categorizes event studies to examine the influence of favorable and unfavorable ISec events on stock markets. We extend the research conducted by Spanos and Angelis (2016) and provide a comprehensive understanding of the market's efficiency to process public information released about ISec events, ISec contingency factors, and the influence of ISec events on stock prices and factors other than price. Our systematic search reveals 58 relevant papers that include 80 studies. We find that in 75% of the studies ISec events can significantly affect a company's stock market performance, and that such effects are primarily exhibited within two days before and after the event day. Further, the magnitude of abnormal returns is higher in studies examining unfavorable ISec events, such as ISec breaches, compared to abnormal returns from favorable events, such as ISec investments and ISec certifications. In the end, our SLR serves as a foundation for ISec and management communities to build upon to keep industry and academia apprised of continually developing trends, new attack vectors and types of data breaches, protective ISec behaviors and programs, and their subsequent influences on stock market values and returns.en
dc.description.versionAccepted versionen
dc.format.extent22 page(s)en
dc.format.mimetypeapplication/pdfen
dc.identifierARTN 102451 (Article number)en
dc.identifier.doihttps://doi.org/10.1016/j.cose.2021.102451en
dc.identifier.eissn1872-6208en
dc.identifier.issn0167-4048en
dc.identifier.orcidLowry, Paul [0000-0002-0187-5808]en
dc.identifier.urihttp://hdl.handle.net/10919/107494en
dc.identifier.volume110en
dc.language.isoenen
dc.publisherElsevieren
dc.relation.urihttp://gateway.webofknowledge.com/gateway/Gateway.cgi?GWVersion=2&SrcApp=PARTNER_APP&SrcAuth=LinksAMR&KeyUT=WOS:000704295500006&DestLinkType=FullRecord&DestApp=ALL_WOS&UsrCustomerID=930d57c9ac61a043676db62af60056c1en
dc.rightsIn Copyrighten
dc.rights.urihttp://rightsstatements.org/vocab/InC/1.0/en
dc.subjectTechnologyen
dc.subjectComputer Science, Information Systemsen
dc.subjectComputer Scienceen
dc.subjectEvent study methodology (ESM)en
dc.subjectInformation security (ISec) breachesen
dc.subjectSystematic literature review (SLR)en
dc.subjectISec eventsen
dc.subjectISec investmentsen
dc.subjectEfficient market hypothesisen
dc.subjectContingency factorsen
dc.subjectAbnormal returnsen
dc.subjectIDENTITY THEFT COUNTERMEASURESen
dc.subjectBREACH ANNOUNCEMENTSen
dc.subjectEMPIRICAL-EVIDENCEen
dc.subjectECONOMIC-IMPACTen
dc.subjectPROSPECT-THEORYen
dc.subjectFIRMen
dc.subjectRISKen
dc.subjectINVESTMENTen
dc.subjectPERFORMANCEen
dc.subjectDISCLOSURESen
dc.subjectPub SAen
dc.subjectPillar Security Privacy Trusten
dc.subjectAACSB Table 1 Scholar Contributionen
dc.subject08 Information and Computing Sciencesen
dc.subjectStrategic, Defence & Security Studiesen
dc.titleStock market reactions to favorable and unfavorable information security events: A systematic literature reviewen
dc.title.serialComputers & Securityen
dc.typeArticle - Refereeden
dc.type.dcmitypeTexten
dc.type.otherJournalen
pubs.organisational-group/Virginia Techen
pubs.organisational-group/Virginia Tech/Pamplin College of Businessen
pubs.organisational-group/Virginia Tech/Pamplin College of Business/Business Information Technologyen
pubs.organisational-group/Virginia Tech/All T&R Facultyen
pubs.organisational-group/Virginia Tech/Pamplin College of Business/PCOB T&R Facultyen

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