Should you disclose a data breach via social media? Evidence from US listed companies

  • Pierangelo Rosati
  • , Peter Deeney
  • , Mark Cummins
  • , Lisa van der Werff
  • , Theo Lynn

Research output: Chapter in Book/Report/Conference proceedingsChapterpeer-review

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 languageEnglish
Title of host publicationProceedings of the 51st Annual Hawaii International Conference on System Sciences, HICSS 2018
EditorsTung X. Bui
PublisherIEEE Computer Society
Pages4772-4781
Number of pages10
ISBN (Electronic)9780998133119
Publication statusPublished - 2018
Externally publishedYes
Event51st Annual Hawaii International Conference on System Sciences, HICSS 2018 - Big Island, United States
Duration: 2 Jan 20186 Jan 2018

Publication series

NameProceedings of the Annual Hawaii International Conference on System Sciences
Volume2018-January
ISSN (Print)1530-1605

Conference

Conference51st Annual Hawaii International Conference on System Sciences, HICSS 2018
Country/TerritoryUnited States
CityBig Island
Period2/01/186/01/18

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