How Do Investors Perceive the Materiality of Data Security Incidents

Data security incidents are continually increasing; hackers, governments, and other actors increasingly attempt to gain unauthorized access confidential data. Information Systems (IS) users becoming more vulnerable the risks of data breaches. Many stakeholders perceive cybersecurity as indicators firms' operational technological internal deficiencies. Previous research has revealed that investors react negatively breaches, yet little is known about investors' reactions material incidents. Using a sample 232 for 132 publicly traded companies in United States, we applied an event study methodology discern versus immaterial We also use multivariate regression time-to-event analysis examine what determines degree reactions, considering several intervals around day. Our results show deficiency breached comparison