Analyzing Effects on Firms' Market Value of Personal Information Security Breaches

JeongYeon Kim


With the increases of requirement for user identification in Internet services, we should let the service companies know my personal information. If the shared personal information with them are used in not-allowed area or delivered to un-authorized persons, we may have practical harms in several fields such as financial related operations. Korean Government has introduced new management method for personal information, but it is not hard to find the personal information management issues from Korean news papers. The proper measurement should be delivered to related companies to help them to decide investment for security. This paper review the indirect measurement method of demages by check the stock prices of related company for personal information management issue. We check the relationship between change of stock price and the information management issue. The result shows there are no changes in stock market. Korean government added strong regulations for personal information management though. To prevent further personal information issues, we should recognize the indirect damages properly and let the company pay higher reparations for any personal information abuse

Full Text:



Ahn, H. G., "Trend and Forecast for the Confidential Information Leakage Prevention of Industries and Personal Privacy Protection," Korean Institute of Information Scientists and Engineers, Vol. 25, No. 8, pp. 42-47, 2007.

Cavusoglu, H., M ishra, B., and Raghunathan, S., "The effect of internet security breach announcements on market value : Capital market reactions for breached firms and internet security developers," International Journal of Electronic Commerce, Vol. 9, No. 1, pp. 70-104, 2004.

CIC Security Working Group, "Incident Cost Analysis and Modeling Project," 1998.

Congressional Research Service, "The Economic Impact of Cyber-Attacks," 2004.

Ettredge, M. and Richardson, V. J., "Assessing the risk in e-commerce," 2002. IEEE.

Gordon, L. A. and Loeb, M. P., "Managing cyber-security resources : A costbenefit analysis," McGraw-Hill New York, Vol. 1. 2006.

Han, C. H., Chai, S. W., Yoo, B. J., Ahn, D. H., and Park, C. H., "A Quantitative Assessment Model of Private Information Breach," The Journal of Society for e-Business Studies, Vol. 16, No. 4, pp. 17-31, 2011.

Kang, H., Park, K. C., Park, W. H., and Kuk, K. H., "A Study on Model for Assessment of Economic Damages Due to Cyber Terror," Journal of Infoamtion and Security, Vol. 9, No. 3, pp. 25-33, 2009.

Kim, J. K. and Lee, D. H., "A Research on Information Security Risk-based Antecedents Influencing Electronic Commerce User's Trust," Asia Pacific Journal of Information Systems, Vol. 15, No. 2, pp. 65-96, 2005.

Kong, H. K. and Kim, T. S., "Research trend on the effects of invest on information security," Review of Korea Institute of Information Security and Cryptology, Vol. 17, No. 4, pp. 26-33, 2007.

Kwon, Y. O. and Kim, B. D., "The Effect of Information Security Breach and Security Investment Announcement on the Market Value of Korean Firms," Information Systems Review, Vol. 9, No. 1, pp. 105-120, 2007.

Nam, K. H., Park, S. J., Kang, H. S., Nam, K. H., and Kim, S. I., "The latest technology trends and future prospects on personal data protection," Review of Korea Institute of Information Security and Cryptology, Vol. 18, No. 6, pp. 11-19, 2008.

Nam, S. H., "Empirical Study on the Impact of Security events to the Stock Price in the Analysis method of Enterprise Security Investment Effect," Ph.D thesis, Korea University, 2006.

Ryu, I. and Choi, H. R., "Factors Influencing the Consumer Trust and Mediating Roles of Trust on Purchasing Intention in B2C Electronic Commerce," Asia Pacific Journal of Information Systems, Vol. 13, No. 4, pp. 49-72, 2003.

Smith, D. M., "The Cost of Lost Data," The George L. Graziadio School of Business and Management Report, Pepperdine University, 2003.

Yoo, J. H., Jie, S. H., and Lim, J. I., "Estimating Direct Costs of Enterprises by Personal Information Security Breaches," Journal of Korea Institute of Information Security and Cryptology, Vol. 19, No. 4, pp. 63-75, 2009.


Yoo, J. H., Gee, S. H., Song, H. I., Chung, K. H., and Lim, J. I., "Estimating Economic Damages from Internet Incidents," National Information Society Agency, Vol. 15, No. 1, pp. 3-18, 2008.


  • There are currently no refbacks.