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Planning Technology Investments For High Payoffs: A Rational Expectations Approach To Gauging Potential And Realized Value In A Changing Environment


  • Myung Ko

    (University of Texas at San Antonio)

  • Kweku-Muata

    (Virginia Commonwealth University)

  • Carlos Dorantesa

    (University of Texas at San Antonio)


This paper examines the impact of information security breaches on organizational performance. Up to date, there have been only a few empirical academic studies that have investigated this issue and they have investigated information security breaches with the focus on the short-term impact on the market value of the firm. This study offers an alternate approach to investigate this issue as it explores the impact of breaches on financial performance of the firm, one year after the breach. Using a “matched sampling” methodology, we explored the impact of each type of breach (i.e. confidentiality, integrity, and availability) and also by IT intensity and size. Our results suggest that the direction of the impact (i.e. positive, negative) is dependent on the type of security breaches and also the impact of IT intensive firms is different from non-IT intensive firms. Our study also includes some important implications for managers and stock market investors.

Suggested Citation

  • Myung Ko & Kweku-Muata & Carlos Dorantesa, "undated". "Planning Technology Investments For High Payoffs: A Rational Expectations Approach To Gauging Potential And Realized Value In A Changing Environment," Working Papers 0040, College of Business, University of Texas at San Antonio.
  • Handle: RePEc:tsa:wpaper:0040

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    References listed on IDEAS

    1. Herr, Paul M & Kardes, Frank R & Kim, John, 1991. " Effects of Word-of-Mouth and Product-Attribute Information on Persuasion: An Accessibility-Diagnosticity Perspective," Journal of Consumer Research, Oxford University Press, vol. 17(4), pages 454-462, March.
    2. Folkes, Valerie S & Koletsky, Susan & Graham, John L, 1987. " A Field Study of Causal Inferences and Consumer Reaction: The View from the Airport," Journal of Consumer Research, Oxford University Press, vol. 13(4), pages 534-539, March.
    3. Sullivan, Mary, 1990. "Measuring Image Spillovers in Umbrella-Branded Products," The Journal of Business, University of Chicago Press, vol. 63(3), pages 309-329, July.
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    More about this item


    Information security; impact; security breach; organizational performance; confidentiality; integrity; availability;

    JEL classification:

    • M15 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - IT Management


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