Examination of the Financial Relationship Between Overall Stock Market Value and Corporate Investments in Privacy
Joseph Squillace · SoutheastCon 2022 · 2022
To better understand why privacy breach incidents continue to occur, this research utilizes Event Study Methodology to examine an area of weakness linked to this phenomenon: corporate investments in privacy. It is argued in this study that a perceived lack of financial value exists to motivate proactive corporate investments in privacy. It is further argued that minimal concern exists for potential financial loss to overall corporate stock market value from privacy breach incidents to motivate reactive corporate investments in privacy. Quantitative analysis of the five-year data sample investigated in this research indicates minimal positive increase in overall corporate stock market value associated with corporate investments in privacy, in parallel with zero presence of long-term financial loss to overall corporate stock market value resulting from privacy breach incidents. This study presents the first known event study research quantifying the financial impact of corporate investments in privacy within the Information System, Assurance, or Cybersecurity domains and disciplines.