Purpose - To investigate the impact of information security news on corporate stock price, this study analyzes the degree of influence and also the response time lag in various industries. Design/methodology/approach - In order to find out the relevance between information security news and corporate stock price, this study adopts event study method. Real information security news and the corresponding stock prices were collected. With the statistical methods, we tried to explore whether there will be abnormal return when the information security news appeared. In addition, we examine whether there will be differences in abnormal return or sensitive level of information security news by categorizing the events in disparate industries accordingly. Findings - The research result demonstrates that the information security news will cause short-term abnormal return of stock price in the day of incident and the next day. Furthermore, the reaction to the information security events will vary in different industry. Research limitations/implications - Recently, the transmission of information security news not only depends on news media, but also on social media. Nevertheless, the research model which is suitable for collecting and analyzing on this aspect has not been formulated. It cannot be inferred that whether it will influence the investor to have different investment decision when they acquire the information this way. In the future, the transmission methods should be included in the research for analysis. Practical implications - With the advancement of information technology and development of network applications, it is a very important issue for enterprises to reduce operational risk which is brought about by information technology. If the information security incidents lead to user information leakage, it will cause damage to enterprise image. Through this research result, enterprises should pay more attention to maintenance of information security. Originality/value - By analyzing the recent news, the occurrence of information security incidents causes short-term abnormal return of enterprise stock price. Moreover, in different industry, such as Consumer Discretionary, Financials and Information Technology, the level of abnormal return is very different.
|Translated title of the contribution||Research on Abnormal Return of Enterprise Stock Price for the Information Security News|
|Original language||Chinese (Traditional)|
|State||Published - Jul 2018|
- information security news
- event study method
- market value
- abnormal return