Case Studies of Cybercrime and its Impact on Marketing Activity and Shareholder Value

Academy of Marketing Studies Journal, 2011

19 Pages Posted: 14 Dec 2010

See all articles by Katherine Taken Smith

Katherine Taken Smith

Texas A&M University-Corpus Christi-College of Business

Murphy Smith

Texas A&M University-Corpus Christi-Department of Accounting

Jacob Lawrence Smith

Texas A&M University

Date Written: December 13, 2010

Abstract

Cybercrime, also called e-crime, costs publicly traded companies billions of dollars annually in stolen assets and lost business. Cybercrime can totally disrupt a company’s marketing activities. Further, when a company falls prey to cyber criminals, this may cause customers to worry about the security of their business transactions with the company. As a result, a company can lose future business if it is perceived to be vulnerable to cybercrime. Such vulnerability can lead to a decrease in the market value of the company, due to legitimate concerns of financial analysts, investors, and creditors. This study examines 10 case studies of publicly traded companies affected by cybercrime, and its impact on marketing activity and shareholder value. The study also describes some of the major types of cybercrime. Results indicate that costs of cybercrime go beyond stolen assets, lost business, and company reputation; cybercrime has a significant negative effect on shareholder value.

Keywords: e-Commerce, e-Marketing, Cybercrime, Shareholder Value, Financial Markets

JEL Classification: D4, G14, M3

Suggested Citation

Smith, Katherine Taken and Smith, Murphy and Smith, Jacob Lawrence, Case Studies of Cybercrime and its Impact on Marketing Activity and Shareholder Value (December 13, 2010). Academy of Marketing Studies Journal, 2011. Available at SSRN: https://ssrn.com/abstract=1724815

Katherine Taken Smith

Texas A&M University-Corpus Christi-College of Business ( email )

6300 Ocean Drive
Corpus Christi, TX 78412
United States

Murphy Smith (Contact Author)

Texas A&M University-Corpus Christi-Department of Accounting ( email )

6300 Ocean Dr
Corpus Christi, TX 78412
United States

Jacob Lawrence Smith

Texas A&M University ( email )

Langford Building A
798 Ross St.
College Station, TX 77843-3137
United States

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