Abstract

<jats:p> Sensitive data are often handled in business processes. As an important component of industry systems, information system (IS) plays a vital role in business processes. However, data and information may leak in business processes. The damages caused by information security breaches (ISBs) on firms are increasing in recent years. Previous studies have consistently found that the announcements of ISBs are negatively associated with the market values of the announcing firms during the days surrounding the breach announcements. Globalization drives firms in diverse industries to cross-list their stocks. With the benefits of cross-listing, firms are able to perform entrepreneurship and industry integration is improved as well. Because cross-listing improves information environments and provides better investor protection, this paper argues that cross-listing help firms to reduce the negative impacts caused by their announcements of ISBs. From the perspective of ISs engineering, this paper conducts an event study of 120 publicly traded firms and finds that cross-listing does not mitigate the impact of ISB announcements on a firm’s stock prices. </jats:p>