Please use this identifier to cite or link to this item: https://ir.iimcal.ac.in:8443/jspui/handle/123456789/1035
Title: Adoption of identity theft countermeasures and its short- And long-term impact on firm value
Authors: Bose, Indranil
Leung, Alvin Chung Man
Keywords: Calendar-time portfolio analysis
Event study
Firm value
Identity theft
Identity theft countermeasures
Long-term impact
Short-term impact
Stock prices
Issue Date: 2019
Publisher: SCOPUS
MIS Quarterly: Management Information Systems
University of Minnesota
Series/Report no.: 43(1)
Abstract: Identity theft has impaired e-commerce. To combat the crime, many identity theft countermeasures (ITC) have been proposed. As investments in ITC are substantial and the benefits of such investments are intangible, companies are often hesitant to adopt such measures. This was the motivation for this study of the impact of 526 ITC adoption announcements on short- and long-term market value. The event study shows that such announcements result in positive market return of about U.S. $583 million around the date of announcement. Calendar-time portfolio analysis (CPA) is used for the long-term impact analysis and shows that the adoption of ITC generates positive and significant average monthly return up to 1.5% with control of market risk factors in two years. Subsampling analysis and interaction analysis show that U.S. listing, early ITC adoption, and two- factor authentication may moderate the market value of ITC adopters differently. A number of robustness checks (e.g., Heckman model, cross-sectional regression on Tobin's Q, firm-specific risk factor analysis, subsampling analysis by ICT development, and analysis of security statements in annual reports) are performed. The research provides quantitative evidence of financial gain resulting from adoption of ITC and aspires to raise ITC awareness among industrial practitioners.
Description: Bose, Indranil, Indian Institute of Management Calcutta, Diamond Harbor Road, Kolkata, 700104, India; Leung, Alvin Chung Man, Department of Information Systems, College of Business, City University of Hong Kong, Tat Chee Avenue, Kowloon, Hong Kong
ISSN/ISBN - 02767783
pp.313-327
DOI - 10.25300/MISQ/2019/14192
URI: https://www.scopus.com/inward/record.uri?eid=2-s2.0-85067350417&doi=10.25300%2fMISQ%2f2019%2f14192&partnerID=40&md5=e20f2a110427e50d18e46aecf7dd4346
https://ir.iimcal.ac.in:8443/jspui/handle/123456789/1035
Appears in Collections:Management Information Systems

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