Impact of reporting information security breaches, accounting quality, and the opportunistic disclosure of good news and bad news

IF 4.1 3区管理学 Q2 BUSINESS

International Journal of Accounting Information Systems Pub Date : 2025-01-23 DOI:10.1016/j.accinf.2025.100729

Mukesh Garg, Tawei Wang, Carla L. Wilkin

{"title":"Impact of reporting information security breaches, accounting quality, and the opportunistic disclosure of good news and bad news","authors":"Mukesh Garg, Tawei Wang, Carla L. Wilkin","doi":"10.1016/j.accinf.2025.100729","DOIUrl":null,"url":null,"abstract":"Given the growing number and impact of information security breaches, we investigate and find a significant association between information security breaches and the risk of a stock price crash. In particular, for some information security breach firms, we find evidence of good news disclosures, with such disclosures being negatively associated with the risk of a stock price crash. Our results indicate that firms with information security breaches use the timing of the disclosure of good news to cushion the blow on firm value due to the reporting of these breaches. We also find a positive and significant association between bad news disclosure and all three measures of stock price crash risk. The timing of the opportunistic release of good or bad news could suggest an effort by firms with information security breaches to confuse investors about the overall impact. Furthermore, we show that firms with information security breaches are less likely to be associated with the risk of a stock price crash when they have more transparent financial reports or ISO 27001 certification.","PeriodicalId":47170,"journal":{"name":"International Journal of Accounting Information Systems","volume":"32 1","pages":""},"PeriodicalIF":4.1000,"publicationDate":"2025-01-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"International Journal of Accounting Information Systems","FirstCategoryId":"91","ListUrlMain":"https://doi.org/10.1016/j.accinf.2025.100729","RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"BUSINESS","Score":null,"Total":0}

引用次数: 0

Abstract

Given the growing number and impact of information security breaches, we investigate and find a significant association between information security breaches and the risk of a stock price crash. In particular, for some information security breach firms, we find evidence of good news disclosures, with such disclosures being negatively associated with the risk of a stock price crash. Our results indicate that firms with information security breaches use the timing of the disclosure of good news to cushion the blow on firm value due to the reporting of these breaches. We also find a positive and significant association between bad news disclosure and all three measures of stock price crash risk. The timing of the opportunistic release of good or bad news could suggest an effort by firms with information security breaches to confuse investors about the overall impact. Furthermore, we show that firms with information security breaches are less likely to be associated with the risk of a stock price crash when they have more transparent financial reports or ISO 27001 certification.

查看原文本刊更多论文

求助全文

约1分钟内获得全文求助全文

来源期刊

International Journal of Accounting Information Systems Multiple-

CiteScore

9.00

自引率

6.50%

发文量

期刊介绍： The International Journal of Accounting Information Systems will publish thoughtful, well developed articles that examine the rapidly evolving relationship between accounting and information technology. Articles may range from empirical to analytical, from practice-based to the development of new techniques, but must be related to problems facing the integration of accounting and information technology. The journal will address (but will not limit itself to) the following specific issues: control and auditability of information systems; management of information technology; artificial intelligence research in accounting; development issues in accounting and information systems; human factors issues related to information technology; development of theories related to information technology; methodological issues in information technology research; information systems validation; human–computer interaction research in accounting information systems. The journal welcomes and encourages articles from both practitioners and academicians.