The Impact of Information Security Breach Incidents on CIO Turnover

What is it about?

We examine the impact of cybersecurity incidents on chief information officer (CIO) turnover. We find that security breaches play an important role in determining CIO turnover. When considering the causes of breaches, we find that system deficiencies, which include data compromised due to system glitches and malicious hacks, lead to a 72 percent increase in the likelihood of CIO turnover. However, breach incidents caused by criminal fraud and human error are not significantly related to CIO turnover. In addition, we extend our analyses to other executives and document that CEOs are more likely to turn over following breach incidents caused by both system deficiency and human error. We contribute to IS literature on cybersecurity and extend executive turnover literature to CIOs. Our study is timely, given the series of high-profile breach incidents covered in the media and the SEC's recently issued guidance on this matter.

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