Market Reaction to Cyber Strategy Disclosure: Word Embedding Derived Approach

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dc.contributor.authorCao, Rui
dc.contributor.authorKafaee, Özüm
dc.contributor.authorAziz, Arslan
dc.contributor.authorCavusoglu, Hasan
dc.date.accessioned2022-12-27T19:20:47Z
dc.date.available2022-12-27T19:20:47Z
dc.date.issued2023-01-03
dc.description.abstractIn this study, we use a semi-supervised natural language processing (NLP) methodology to assess cybersecurity strategy of firms based on their 10-K filings. Adapted from the Cybersecurity Framework developed by the National Institute of Standards and Technology (NIST), five distinct cybersecurity strategies, namely identification, protection, detection, response, and recovery, are measured annually. We find evidence that cybersecurity identification strategy is positively and significantly associated with firm market value. For those firms experienced a cyberattack in the past, disclosing cybersecurity protection strategy is not positively assessed by the market. This paper makes contribution to the literature on cybersecurity by identifying the cyber strategies disclosed in 10-K reports using textual analysis, which can be used in future cyber studies. We further show empirical evidence of how market reacts to different strategies, which have valuable implications for industry as to how to better manage cyber risk.
dc.format.extent10
dc.identifier.doi10.24251/HICSS.2023.737
dc.identifier.isbn978-0-9981331-6-4
dc.identifier.other59d06456-f5ae-4618-889d-71f23f005571
dc.identifier.urihttps://hdl.handle.net/10125/103371
dc.language.isoeng
dc.relation.ispartofProceedings of the 56th Hawaii International Conference on System Sciences
dc.rightsAttribution-NonCommercial-NoDerivatives 4.0 International
dc.rights.urihttps://creativecommons.org/licenses/by-nc-nd/4.0/
dc.subjectOrganizational Cybersecurity: Advanced Cyber Defense, Cyber Analytics, and Security Operations
dc.subjectcyberattacks
dc.subjectcybersecurity strategy
dc.subjectdisclosure
dc.titleMarket Reaction to Cyber Strategy Disclosure: Word Embedding Derived Approach
dc.type.dcmitext
prism.startingpage6078

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Organizational Cybersecurity: Advanced Cyber Defense, Cyber Analytics, and Security Operations