AIS Security Investment to Mitigate Hacking Risk: The Role of Attitudes, Perceived Norms, and Outcomes

43 Pages Posted: 24 Aug 2019

See all articles by Gary Fleischman

Gary Fleischman

Texas Tech University

Mary B. Curtis

University of North Texas

Sean Valentine

University of North Dakota - College of Business & Public Administration

Partha S. Mohapatra

California State University, Sacramento - Department of Accounting

Date Written: August 21, 2019

Abstract

Data breaches experienced by companies such as TJX, Equifax, and Target underscore the importance of accounting information system (AIS) security protection. However, the cost of necessary security may be prohibitive, forcing CFOs to make difficult financial and moral tradeoffs. Our 2x2 randomized experiment varies both the scenario CFO’s investment decision (invest/not) and organizational outcomes (positive/negative). Participant managers judge the scenario CFO’s behavior and make intentions to invest in security themselves. Our findings indicate that perceptions about peers and society drive participant investments in AIS. We also find that as organizational outcomes move from unfavorable to favorable, participants are more forgiving of scenario CFO noninvestment gambling, display weakened moral reasoning, and conveniently alter their investment decisions in lockstep with altered perceptions about how peers and society would behave. In contrast, independent thinkers display strengthened moral reasoning and consistent investment in security patterns irrespective of outcomes.

Keywords: AIS security, Hacking Risk, Integrated Behavioral Model, Ethical Reasoning

JEL Classification: M10, M19

Suggested Citation

Fleischman, Gary and Curtis, Mary B. and Valentine, Sean and Mohapatra, Partha S., AIS Security Investment to Mitigate Hacking Risk: The Role of Attitudes, Perceived Norms, and Outcomes (August 21, 2019). Available at SSRN: https://ssrn.com/abstract=3440427 or http://dx.doi.org/10.2139/ssrn.3440427

Gary Fleischman (Contact Author)

Texas Tech University ( email )

2500 Broadway
Lubbock, TX 79409
United States

Mary B. Curtis

University of North Texas ( email )

1155 Union Circle, #305219
Denton, TX 76203
United States
940.565.4366 (Phone)

HOME PAGE: http://www.coba.unt.edu/acct/faculty/curtis/

Sean Valentine

University of North Dakota - College of Business & Public Administration ( email )

Grand Forks, ND 58105
United States

Partha S. Mohapatra

California State University, Sacramento - Department of Accounting ( email )

United States

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