Abstract
Data breaches represent one of the main concerns for executives across all sectors. Data breaches open a period of crisis for the affected firm and require them to disclose complex information to a variety of stakeholders in a timely and proper manner. This paper investigates the relationship between social media disclosure of a data breach and its cost, as proxied by the response of the affected firm’s stock price. Using an event study methodology on a sample of 32 data breaches from 29 US publicly-traded firms from 2011 to 2014, we find that social media disclosure exacerbates the negative stock price’s response to the announcement. However, such a negative association is contingent on firm’s visibility on traditional media with social media disclosure having a beneficial effect for low-visibility companies.
Original language | English |
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Pages | 4772-4781 |
Number of pages | 10 |
Publication status | Published - 6 Jan 2018 |
Event | 51st Annual Hawaii International Conference on System Sciences, HICSS 2018 - Big Island, United States Duration: 2 Jan 2018 → 6 Jan 2018 |
Conference
Conference | 51st Annual Hawaii International Conference on System Sciences, HICSS 2018 |
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Country/Territory | United States |
City | Big Island |
Period | 2/01/18 → 6/01/18 |
Keywords
- information security and privacy
- crisis communication
- cybersecurity
- data breach
- social media
- stock market