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The market value of information system (IS) security for e-banking

Research output: Contribution to journalArticlepeer-review

Abstract

Understanding the financial value resulting from IS security investments is critically important to organizations focused on protecting service confidentiality, integrity, and availability in order to preserve firm revenues and reputations. Quantifying the financial effect from IS security investments is difficult to derive. This study investigated the relationship between e-banking investments in IS security and their market value impacts. Using an event study approach, the author captured e-banking firm specific data and isolated the IS security effect through the measured change in market values. Study findings indicated statistically significant market reactions for e-banking firms making IS security investment announcements and suggested that investors rewarded IS security technology investments more highly than e-banking firms making IS security people-focused investment announcements.

Original languageAmerican English
JournalOnline Journal of Applied Knowledge Management
Volume1
StatePublished - Jan 1 2013

Keywords

  • Event study
  • e-banking
  • information security
  • informationsystems investments
  • market value
  • value of information security investments

Disciplines

  • Computer Sciences

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