Does a CIO Matter? Investigating the Impact of IT Security Breaches on Firm Performance Using Tobin´s q

We empirically investigate the impact of a chief information officer (CIO) on firm performance in the event of IT security breaches. Using Resource Based View (RBV) as a theoretical base and linking it with the role of CIOs, we determine through twin generalized linear squares (GLS) regression models that a CIO indeed does have a significant impact at the macro- and micro- levels on firm performance. In this study, Tobin´s q is used as an indicator of firm performance in the context of IT security breach for the first time in IS. Our results have implications for both the practitioner and the academic, such as positive influences of CIOs, and an alternate strategy for computing firm performance respectively. We also set the stage for future research in this area.