Is corporate reputation associated with voluntary cybersecurity risk reporting?

Title

Is corporate reputation associated with voluntary cybersecurity risk reporting?

Creator

Singh H.

Description

Purpose: This study investigated the effect of voluntary cybersecurity risk reporting (VCRR) on corporate reputation. By examining the association between VCRR and corporate reputation, this study aims to provide exploratory evidence of how cybersecurity risk is sensitive to a companys image and reputation. Design/methodology/approach: An automated content analysis of VCRR by 95 Bombay Stock Exchange-listed companies was undertaken using Python code. Signaling and legitimacy theories were adopted to interpret the findings, establishing whether VCRR was related to corporate reputation. Findings: The results confirm that VCRR improves the corporate reputation in the financial market. The results also confirm the signalling and legitimacy theory that a company can manage reputational risks through higher voluntary risk disclosure. Practical implications: The corporations managers can gain insights from the studys findings and proactively address cybersecurity risks through strategic disclosure and management practices. In addition, organizations can recognize that investors value transparency and establish a positive reputation for those who communicate openly. Social implications: A significant association between VCRR and corporate reputation implies that such disclosures enhance trust and transparency in the business sector and induce security and accountability among investors engaging with the company. Originality/value: To the best of the authors knowledge, this study is the first that empirically investigates this issue and adds to the international literature a new explanatory variable, corporate reputation, to explain VCRR practices. 2024, Emerald Publishing Limited.

Source

Meditari Accountancy Research

Date

2024-01-01

Publisher

Emerald Publishing

Subject

Cybersecurity; Cybersecurity risk disclosure; Risk disclosure; Voluntary disclosure

Coverage

Singh H., Department of Commerce, Christ University, Bangalore, India

Rights

Restricted Access

Relation

ISSN: 2049372X

Format

Online

Language

English

Type

Article

Identifier

https://doi.org/10.1108/MEDAR-02-2024-2329

https://www.scopus.com/inward/record.uri?eid=2-s2.0-85208616682&doi=10.1108%2fMEDAR-02-2024-2329&partnerID=40&md5=30a74ae79f44886234403e49e6ff005a