Advances in Economics, Management and Political Sciences

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Proceedings of the 6th International Conference on Economic Management and Green Development (ICEMGD 2022), Part Ⅰ

Series Vol. 3 , 21 March 2023


Open Access | Article

The effectiveness of information disclosure under cyber attack

Shaojun Tong * 1
1 University of Miami Coral Gables, FL 33124

* Author to whom correspondence should be addressed.

Advances in Economics, Management and Political Sciences, Vol. 3, 8-17
Published 21 March 2023. © 21 March 2023 The Author(s). Published by EWA Publishing
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Citation Shaojun Tong. The effectiveness of information disclosure under cyber attack. AEMPS (2023) Vol. 3: 8-17. DOI: 10.54254/2754-1169/3/2022727.

Abstract

With the global economy increasingly relying on electronic transactions, more and more companies are suffering from network attacks, which have a certain impact on the future development of their enterprises. I use the information of cyber attacks suffered by Listed Companies in the United States from 2005 to 2019 to analyze whether the cyber attacks will have a short-term impact on the stock prices of the companies under attack, and whether effective information disclosure can help the companies to stop the loss effectively to a certain extent. I find that effective information disclosure can help enterprises reduce the negative impact to a certain extent, and when the relevant information reaches a higher degree of openness and transparency, it can help enterprises go through the crisis more smoothly compared to the enterprises less so.

Keywords

cyber-attacks, stock price, Information disclosure

References

1. Allianz Global Corporate and Specialty. Allianz Risk Barometer: Identifying the Major Business Risks for 2020. (2020).

2. Hilary, G., Segal, B., & Zhang, M. H. (2016). Cyber-risk Disclosure: Who cares? (Georgetown McDonough School of Business Research Paper No. 2852519).

3. Li, H., No, W. G., & Wang, T. SEC's cyber-security disclosure guidance and disclosed cyber-security risk factors. International Journal of Accounting Information Systems, 30, 40-55. (2018).

4. Cashell, B., Jackson, W. D., Jickling, M., & Webel, B. The economic impact of cyber-attacks. Congressional research service documents, CRS RL32331 (Washington DC), 2. (2004).

5. Kevin M. Gatzlaff and Kathleen A. McCullough. The Effect of Data Breaches on Shareholder Wealth. Risk Management and Insurance Review 13(1):61-83 (2010).

6. Shaen Corbet, Cons tantin Gurdgiev,What the hack: Systematic risk contagion from cyber events, International Review of Financial Analysis, Volume 65, (2019)

7. Tosun, Onur Kemal, Cyber Attacks and Stock Market Activity. (2019)

8. Hogan, Karen M., A Global Comparison of Corporate Value Adjustments to News of Cyber Attacks. Journal of Governance and Regulation 9(2). (2020)

Data Availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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Volume Title
Proceedings of the 6th International Conference on Economic Management and Green Development (ICEMGD 2022), Part Ⅰ
ISBN (Print)
978-1-915371-15-7
ISBN (Online)
978-1-915371-16-4
Published Date
21 March 2023
Series
Advances in Economics, Management and Political Sciences
ISSN (Print)
2754-1169
ISSN (Online)
2754-1177
DOI
10.54254/2754-1169/3/2022727
Copyright
21 March 2023
Open Access
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

Copyright © 2023 EWA Publishing. Unless Otherwise Stated