Market Value of Voluntary Disclosures Concerning Information Security

Proactive security activities encompass voluntary disclosure concerning information security that firms are taking to improve the security of their information and information systems. Examples of voluntary disclosures falling into this category include discussions about a firm’s use of encryption, secure socket layers data transmission, implementation of network security measures, or disclosure of computer security policy. The disclosure is coded as 1 if the firm provides any information, 0 otherwise.