How can firms repair their reputations when they discover information technology control material weaknesses?

IF 4.1 3区 管理学 Q2 BUSINESS International Journal of Accounting Information Systems Pub Date : 2023-03-01 DOI:10.1016/j.accinf.2022.100595
Anna M. Rose , Jacob M. Rose , Kara M. Obermire , Carolyn Strand Norman , Nicole Frydenlund
{"title":"How can firms repair their reputations when they discover information technology control material weaknesses?","authors":"Anna M. Rose ,&nbsp;Jacob M. Rose ,&nbsp;Kara M. Obermire ,&nbsp;Carolyn Strand Norman ,&nbsp;Nicole Frydenlund","doi":"10.1016/j.accinf.2022.100595","DOIUrl":null,"url":null,"abstract":"<div><p>We examine the effects of information technology material weaknesses on a firm’s reputation by examining how management’s actions before and after disclosure influence investors’ trust in management and perceptions of investment risk. Specifically, we look at the influence of: 1) management taking responsibility for an information technology material weakness, and 2) replacing the CFO with someone with technology expertise. We find that management taking responsibility for a material weakness does <em>not</em> lead to increased trust in management before or after remediation. However, investors perceive more favorable market reactions to remediation when management had previously taken responsibility for the control weakness. Further, we find that replacing the CFO with someone who has technology expertise results in increases in investor trust and improvements in perceptions of investment risk after control weakness remediation. This suggests the importance of sending clear signals to investors that the company is hiring managers with appropriate technology expertise.</p></div>","PeriodicalId":47170,"journal":{"name":"International Journal of Accounting Information Systems","volume":null,"pages":null},"PeriodicalIF":4.1000,"publicationDate":"2023-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"International Journal of Accounting Information Systems","FirstCategoryId":"91","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S1467089522000471","RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"BUSINESS","Score":null,"Total":0}
引用次数: 0

Abstract

We examine the effects of information technology material weaknesses on a firm’s reputation by examining how management’s actions before and after disclosure influence investors’ trust in management and perceptions of investment risk. Specifically, we look at the influence of: 1) management taking responsibility for an information technology material weakness, and 2) replacing the CFO with someone with technology expertise. We find that management taking responsibility for a material weakness does not lead to increased trust in management before or after remediation. However, investors perceive more favorable market reactions to remediation when management had previously taken responsibility for the control weakness. Further, we find that replacing the CFO with someone who has technology expertise results in increases in investor trust and improvements in perceptions of investment risk after control weakness remediation. This suggests the importance of sending clear signals to investors that the company is hiring managers with appropriate technology expertise.

查看原文
分享 分享
微信好友 朋友圈 QQ好友 复制链接
本刊更多论文
当企业发现信息技术控制的重大缺陷时,他们如何修复自己的声誉?
我们通过研究管理层在披露前后的行为如何影响投资者对管理层的信任和对投资风险的感知,来研究信息技术实质性弱点对公司声誉的影响。具体而言,我们考察了以下因素的影响:1)管理层对信息技术的重大弱点负责,2)用具有技术专业知识的人取代首席财务官。我们发现,在补救之前或之后,管理层对重大弱点负责并不会增加对管理层的信任。然而,当管理层之前对控制不力负责时,投资者认为市场对补救措施的反应更为有利。此外,我们发现,用具有技术专业知识的人取代首席财务官会增加投资者的信任,并在控制薄弱环节补救后改善对投资风险的感知。这表明向投资者发出明确信号的重要性,即公司正在招聘具有适当技术专业知识的经理。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
求助全文
约1分钟内获得全文 去求助
来源期刊
CiteScore
9.00
自引率
6.50%
发文量
23
期刊介绍: The International Journal of Accounting Information Systems will publish thoughtful, well developed articles that examine the rapidly evolving relationship between accounting and information technology. Articles may range from empirical to analytical, from practice-based to the development of new techniques, but must be related to problems facing the integration of accounting and information technology. The journal will address (but will not limit itself to) the following specific issues: control and auditability of information systems; management of information technology; artificial intelligence research in accounting; development issues in accounting and information systems; human factors issues related to information technology; development of theories related to information technology; methodological issues in information technology research; information systems validation; human–computer interaction research in accounting information systems. The journal welcomes and encourages articles from both practitioners and academicians.
期刊最新文献
Bridging the gap in talent: A framework for interdisciplinary research on autism spectrum disorder persons in accounting and information systems A scoping review of ChatGPT research in accounting and finance Digital transformation voluntary disclosure: Insights from leading European companies Understanding cybersecurity breach contagion effects: The role of the loss heuristic and internal controls Internal control risk disclosure, media coverage and stock price crash risk: Evidence from China
×
引用
GB/T 7714-2015
复制
MLA
复制
APA
复制
导出至
BibTeX EndNote RefMan NoteFirst NoteExpress
×
×
提示
您的信息不完整,为了账户安全,请先补充。
现在去补充
×
提示
您因"违规操作"
具体请查看互助需知
我知道了
×
提示
现在去查看 取消
×
提示
确定
0
微信
客服QQ
Book学术公众号 扫码关注我们
反馈
×
意见反馈
请填写您的意见或建议
请填写您的手机或邮箱
已复制链接
已复制链接
快去分享给好友吧!
我知道了
×
扫码分享
扫码分享
Book学术官方微信
Book学术文献互助
Book学术文献互助群
群 号:481959085
Book学术
文献互助 智能选刊 最新文献 互助须知 联系我们:info@booksci.cn
Book学术提供免费学术资源搜索服务,方便国内外学者检索中英文文献。致力于提供最便捷和优质的服务体验。
Copyright © 2023 Book学术 All rights reserved.
ghs 京公网安备 11010802042870号 京ICP备2023020795号-1