JOURNAL BROWSE
Search
Advanced SearchSearch Tips
Effect of Information Security Incident on Outcome of Investment by Type of Investors: Case of Personal Information Leakage Incident
facebook(new window)  Pirnt(new window) E-mail(new window) Excel Download
 Title & Authors
Effect of Information Security Incident on Outcome of Investment by Type of Investors: Case of Personal Information Leakage Incident
Eom, Jae-Ha; Kim, Min-Jeong;
  PDF(new window)
 Abstract
As IT environment has changed, paths of information security in financial environment which is based on IT have become more diverse and damage caused by information leakage has been more serious. Among security incidents, personal information leakage incident is liable to give the greatest damage. Personal information leakage incident is more serious than any other types of information leakage incidents in that it may lead to secondary damage. The purpose of this study is to find how much personal information leakage incident influences corporate value by analyzing 21 cases of personal information leakage incident for the last 15 years 1,899 listing firm through case research method and inferring investors` response of to personal information leakage incident surveying a change in transaction before and after personal information leakage incident. This study made a quantitative analysis of what influence personal information leakage incident has on outcome of investment by types of investors by classifying types of investors into foreign investors, private investors and institutional investors. This study is significant in that it helps improve awareness of importance of personal information security by providing data that personal information leakage incident can have a significant influence on outcome of investment as well as corporate value in Korea stock market.
 Keywords
Personal Information leakage;Stock Return;Valuation;Investors trading behavior and Performance;
 Language
Korean
 Cited by
 References
1.
Beaver, William H.1968. "The information Content of Annual Earnings Announcements, Empirical Research in Accounting Selected Studies." Journal of Accounting Research, supplement, Vol.6, Issue 3, pp. 67-92. crossref(new window)

2.
Brown, S., and J. Warner.1980 Measuring Security Price Performance. Journal of Financial Economics.

3.
Dodd, Paul and Jerold B. Warner, "On Corporate Governance: A Study of Proxy Contests," Journal of Financial Economics Vol. 11, 1983, pp. 401-438. crossref(new window)

4.
Fama, E., L. Fisher, M. Jensen, and R. Roll. 1969. The Adjustment of Stock Prices to New Information. The International Economics Review, 10(1): 1-21. crossref(new window)

5.
Huseyin Cavusoglu, Birendra Mishra, and Srinivasan Raghunathan, "The Effect of Internet Security Breach Announcements on Market Value: Capital Market Reactions for Breached Firms and Internet Security Developers," International Journal of Electronic Commerce, Vol. 9, no. 1, pp. 69-104, 2004.

6.
Kwangsoo Ko, Keunsoo Kim, "Portfolio performance and Characteristics of Each Invest Type: Individuals, Institutions, and Foreigners", The Securities Association, Vol 33(4), pp. 35-62.

7.
Dongsoon Kim, Youngsoon Cheon, "Foreign Investors vs. Domestic Investors, Who Are Better Informed Investors?". The Securities Association, Vol 33(2), pp. 1-44.

8.
SunHo Kim, "The Investment Behavior and Return Prediction of Various Investor Type in Korea.", Korean Association of Business Education, Vol,40, pp. 3-26, 2005.

9.
JeongYeon Kim, "Analyzing Effects on Firms' Market Value of Personal Information Security Breaches," The Journal of Society for e-Business Studies, 18(1), pp. 1-12, 2013.

10.
Tae Hwan Kim, Haeni Lee, and Jinho Yoo, "Study on the Pattern of Stock Price Change of Companies After Personal Information Leakage Incident," 2014 KMIS Internetional Conference, pp. 89-92, June 2014.

11.
National Information Security White Paper, NIS, 2015.

12.
SangHoon Nam, "(An)Empirical Study on the Impact of Security events to the Stock Price in the Analysis method of Enterprise Security Investment Effect," Doctor's Thesis, Korea University, February 2006.

13.
Hyejung Moon and Hyun Suk Cho, "Risk based policy at big data era: Case study of privacy invasion," Journal of Information policy, 19(4), pp. 63-82, 2012.

14.
KyungIn Park, KeeHong Bae, JinWan Cho, "Analyses on Performance by Different Type of Investors in Korean Stock Market", The Securities Association, Vol 35(3), pp. 41-76.

15.
Park, Juheon, "Deduction of priorities of investing information security considering types of corporations and security incidents," Master's Thesis, Yonsei University, June 2015.

16.
KyungSik Eom, KiBeomBinh, JoonSeok Kim, "Foreign Investors' Short Sales and Individual Stock Price in the Korean Stock Market", The Korean Journal of Financial Management, Vol 28, Number3, September 2011.

17.
Anat Hovav and JinYoung Han, "The Impact of Security Breach Announcements on the Stock Value of Companies in South Korea," The Journal of Internet Electronic Commerce Research, 13(3), pp. 43-67, September 2013.

18.
Haesu Hwang, Heesang Lee, "The relationship between security incidents and value of companies: Case of listed companies in Korea", Journal of The Korea Institute of Information Security&Cryptology Vol, 25, No,3, Jun, 2015.