Journal article

Cybersecurity awareness and market valuations

Henk Berkman, Jonathan Jona, Gladys Lee, Naomi Soderstrom

Journal of Accounting and Public Policy | ELSEVIER SCIENCE INC | Published : 2018


This paper introduces a measure of firm-specific cybersecurity awareness that can be used in empirical research exploring cyber-related issues facing corporations. It extends and updates Gordon et al. (2010), who develop an indicator capturing the existence of disclosures related to “information security” and show a positive association between market valuation and their measure. Since publication of their paper, cyber-related events have become more frequent and salient, and disclosure of cybersecurity issues has become more extensive. Increased disclosure is largely due to a 2011 requirement by the Securities and Exchange Commission, which provides guidance for disclosure of cyber-related ..

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Funding Acknowledgements

We thank Xinning Xiao for comments and James Kavourakis for research assistance. We are also grateful to Jackie Cook for her help in developing the cybersecurity awareness measure. Jona and Lee acknowledge funding support from an AFAANZ research grant. Jona acknowledges the financial support provided by the University of Melbourne through an Early Career Researcher grant.