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Exploring the Association between Board Structure and Information Security Breaches

  • Hsu, Carol (College of Management, National Taiwan University) ;
  • Wang, Tawei (Shidler College of Business, University of Hawaii at Manoa)
  • Received : 2014.05.02
  • Accepted : 2014.11.26
  • Published : 2014.12.31

Abstract

Although the area of information security planning and management has gained an increased attention, not much discussion was available on the role and the impact of the board members towards a firm's security management and governance decisions. In this research, we draw on corporate governance and the organizational demography literature to conduct an exploratory empirical study on the association between the board structure of a firm and the possibility of information security breaches. Our results show that the board size, the average age/tenure and the heterogeneity of age could reduce the possibility of security breaches while the proportion of independent directors and the heterogeneity of tenure could increase it. Our findings shed lights on the important role played by the board when managing information security risks in organizations.

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