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Article
Publication date: 4 July 2022

Leon Kluiters, Mohit Srivastava and Ladislav Tyll

This study aims to investigate the effects of firm- and governance-specific characteristics on digital trust (DT) and firm value. Firm-specific factors include return on assets…

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Abstract

Purpose

This study aims to investigate the effects of firm- and governance-specific characteristics on digital trust (DT) and firm value. Firm-specific factors include return on assets (ROA), market-to-book ratio (M/B ratio), size and leverage, whilst governance-related factors comprise board size, percentage of female board members, board independence and institutional ownership. All listed US firms over the period of 2011–2016 were analysed in this study.

Design/methodology/approach

This study provides a novel method to empirically measure DT by combining multiple variables to create a combined DT score. The variables include security and privacy scores, security rankings and data breaches, amongst others. Subsequently, a linear regression was performed to evaluate the effect of firm- and governance-specific characteristics on DT, as well as the effect of DT on firm value.

Findings

By using signalling theory, this study finds significant evidence that a firm’s profitability (ROA) decreases whilst its size increases DT. This could be due to the fact that firms with lower DT monetise data more actively, decrease DT and increase short-term profitability. Significant evidence also shows that increasing DT leads to an increase in firm value.

Originality/value

Although numerous studies have been conducted on developing customers’ trust by incorporating corporate social responsibility to improve firm value, the literature remains still on its digital analogue. Therefore, this study extends the knowledge of corporate digital responsibility (CDR) by providing a novel method for calculating DT across industries as an antecedent of CDR. Specifically, it sheds light on how firms can enhance DT by utilising firm- and governance-level factors. This enhanced DT can subsequently increase firm value. The study provides important managerial implications by providing empirical evidence that cybersecurity investments increase firm value. This value increase is related to the rise in shareholder value amongst investors and the increase in the organisation’s consumer perceptions as the latter’s interests are better managed.

Details

Society and Business Review, vol. 18 no. 1
Type: Research Article
ISSN: 1746-5680

Keywords

Article
Publication date: 17 December 2021

Ana María Salazar, María Fernanda Reyes, María Paula Gómez, Olga Pedraza, Angela Gisselle Lozano, María Camila Montalvo and Juan Camilo Rodriguez Fandiño

This paper aims to identify psychosocial, demographic and health risk factors associated with depression in older people.

Abstract

Purpose

This paper aims to identify psychosocial, demographic and health risk factors associated with depression in older people.

Design/methodology/approach

A correlational study with 281 independent and autonomous persons of the community over 60 years old from Bogotá was conducted. The three instruments used to measure the variables included in the data analyses were Demographic and Health Data Questionnaire, Short version of 15 items of Geriatric Depression Scale (GDS) and Montreal Cognitive Assessment Test (MoCA).

Findings

Fifteen percent of the participants presented depression. Depression was associated with different demographic, low social support and health factors in this population group and was particularly high in women. Being a woman with poor social support networks and a previous history of depressive episodes should be considered as determining factors within a clinical risk profile for depression in older adulthood. It is essential to design prevention strategies focused on women and on the development of better social support in old age.

Originality/value

Depression is a prevalent and highly disabling disease, when it is suffered by an older person it is associated with higher mortality, functional dependence, poor physical health, worse quality of life indicators and psychological well-being. In the elderly, the clinical diagnosis of depression is difficult, as it has a high comorbidity and is often confused with other health conditions prevalent during older adulthood.

Details

Working with Older People, vol. 26 no. 2
Type: Research Article
ISSN: 1366-3666

Keywords

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