Nistler CoBPA Faculty Research

Celebrate the impact of our research.

Dr. Sean Valentine, Professor of Management, study presented at the American Accounting Association 2020 Virtual Annual Meeting

Please join us in congratulating Dr. Sean Valentine, Professor of Management for his recent study presented at the American Accounting Association 2020 Virtual Annual Meeting, August 10 – 13, 2020:

Authors: Gary M. Fleischman (Texas Tech University), Sean R. Valentine (University of North Dakota), Mary Curtis (University of North Texas), and Partha Mohapatra (California State University, Sacramento)

Title: “Is High-Risk AIS Security Investment a No-Win Situation? The Influence of Attitudes, Norms, Efficacy and Prior Outcomes”

Abstract: Data breaches experienced by TJX, Equifax, and Twitter underscore the importance of accounting information system (AIS) security protection. However, costs of necessary security may be prohibitive, forcing CFOs to make difficult financial and moral tradeoffs. In order to explored these issues, our 2×2 randomized experiment varies both the scenario CFO’s investment decision (invest/does not invest) and organizational outcomes (firm not hacked / firm hacked). Participant managers judge the scenario CFO’s investment behavior and make their own intentions to invest in security in a similar/dissimilar manner. Findings indicate that perceived norms from peers and society drive participant investments in AIS, and serially mediate organizational outcomes. Peer versus societal influence dominance varies depending on experimental context. Perceptions that the situation overall reflects a no-win situation also drives managerial investment decisions. Confident independent thinkers make more appropriate investment decisions to protect sensitive client data despite possible harm to personal cost cutting reputations.