Examination of Cybercrime and Its Effects on Corporate Stock Value

Journal of Information, Communication & Ethics in Society, 2019, 17(1), 42-60

35 Pages Posted: 12 Oct 2021

See all articles by Katherine Taken Smith

Katherine Taken Smith

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

Amie Jones

Murray State University

Leigh Johnson

Murray State University - Accounting Department

Murphy Smith

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

Date Written: 2019

Abstract

Cybercrime is a prevalent and serious threat to publicly traded companies. Defending company information systems from cybercrime is one of the most important aspects of technology management. Cybercrime often results in stolen assets and lost business, but also damages a company’s reputation, which in turn may affect the company's stock market value. This is a serious concern to company managers, financial analysts, investors, and creditors. This paper examines the impact of cybercrime on stock prices of a sample of publicly traded companies. Stock prices were negatively affected in all time-periods examined, significantly so in one period.

Keywords: Cybercrime, Computer security, Computer ethics, Financial information, Business ethics, Stock value

JEL Classification: M15, M31, M41

Suggested Citation

Smith, Katherine Taken and Jones, Amie and Johnson, Leigh and Smith, Murphy, Examination of Cybercrime and Its Effects on Corporate Stock Value (2019). Journal of Information, Communication & Ethics in Society, 2019, 17(1), 42-60, Available at SSRN: https://ssrn.com/abstract=3918524

Katherine Taken Smith

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

6300 Ocean Drive
Corpus Christi, TX 78412
United States

Amie Jones

Murray State University ( email )

Murray, KY 42071-0009
United States

Leigh Johnson

Murray State University - Accounting Department

Murray, KY 42071-3314
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

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