The Effective of Information Security Management and the Composition of the Board - Base on Firms of Taiwan
Date Issued
2011
Date
2011
Author(s)
Pan, Shih-Chi
Abstract
This thesis focuses on the association between the effectiveness of information security management and the board structure. We build our hypotheses on the agency theory and the resource dependence theory. After searching the samples of information security breaches manually in Information Security and UDN website and combining them with the data of board structure from Company DB of Taiwan Economic Journal, we investigate the how the composition of the board such as size of board, percentage of independent directors, compensation of board directors and percentage of stocks which is owned by board directors could affect the occurrence of information security breaches. Our result demonstrates that as the size of board and the percentage of independent directors increases, the effectiveness of information security management decreases. Our finding suggests that firm should consider the size of board and the percentage of independent board directors when hiring directors and supervisors. The firm needs to have a balanced composition of independent and inside directors in order to achieve a better effectiveness of information security management.
Subjects
information security management
corporate governance
composition of boards of directors
agency theory
resource dependence theory
Type
thesis
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