Investors’ perceptions of the cybersecurity risk management reporting framework

Abstract

Purpose

The purpose of this paper is to propose a research model to examine the perception of non-professional investors toward the cybersecurity reporting framework developed by the American Institute of Certified Public Accountants (AICPA).

Design/methodology/approach

The proposed hypotheses were tested using structural equation modeling with data collected from Amazon's Mechanical Turk platform.

Findings

The findings conclude that investors' perceived benefits of the cybersecurity risk framework are positively related to investment intention. Information quality and cybersecurity awareness also positively influence perceived benefits of the risk framework and investment intention.

Practical implications

Findings of this study are relevant to both regulatory bodies and firms because non-professional investors’ perceptions of the benefits of the AICPA’s reporting framework are unveiled.

Originality/value

Findings from this research help to provide a more in-depth understanding of the impact of various factors on investor’s decision-making process and also significant insights into the non-professional investor’s attitude toward the AICPA’s framework.

Citation

Yang, L., Lau, L. and Gan, H. (2020), "Investors’ perceptions of the cybersecurity risk management reporting framework", International Journal of Accounting & Information Management, Vol. 28 No. 1, pp. 167-183. https://doi.org/10.1108/IJAIM-02-2019-0022