Investment in Cybersecurity Companies in Times of Political and Economic Instability

• Autorzy: Przekota Grzegorz

Identyfikatory

DOI

10.60097/ACIG/190342

• Języki publikacji: EN

Abstrakty

EN

The socio-economic development that has taken place in recent years takes into account cybersecurity issues. Cybersecurity has many different dimensions, including the economic dimension. The Russian-Ukrainian conflict has shown that modern war is not only conventional, but also cybernetic. Earlier, the massive shift to remote communication systems forced by COVID also increased the demand for cybersecurity. This means that cybersecurity companies receive new orders, which can have a positive impact on their financial results. In the opinion of many experts, investing in such companies could be a good business. The research conducted in this article focuses on testing assumptions related to the recognition of investments in technology companies as prospective investments. Therefore, this study examines the impact of Russia-Ukraine war (from February 2022 to December 2024) and the COVID pandemic (from March 2020 to February 2022) on the valuation of cybersecurity companies. The period from January 2015 to February 2020 was used as the comparative period. The research material consists of companies and stock indices from the American and Polish markets. The results of the research are inconclusive. In fact, there are some examples of companies that took advantage of the Russian-Ukrainian conflict to achieve above-average returns. Such a business is risky, which is why these companies are achieving above-average returns with increased shares price volatility. However, it turns out that automatically assigning a company to the cyber or IT category does not mean that it will be a good investment in times of war or pandemic.

Słowa kluczowe

EN

cybersecurity; enterprise development; investment; stock exchange

PL

cyberbezpieczeństwo; rozwój przedsiębiorstwa; inwestycja; giełda

• Wydawca: NASK – National Research Institute
• Czasopismo: Applied Cybersecurity & Internet Governance
• Rocznik: 2024
• Tom: Vol. 3, No. 1
• Strony: 170--184
• Opis fizyczny: Bibliogr. 25 poz., tab., wykr.

Twórcy

autor

Przekota Grzegorz

• Koszalin University of Technology, Poland

• https://orcid.org/0000-0002-9173-2658

Bibliografia

• [1] R. Von Solms, J. Van Niekerk, “From information security to cybersecurity,” Computers & Security, vol. 38, pp. 97–102, 2013, doi: 10.1016/j.cose.2013.04.004.
• [2] W. Raghupathi, S.J. Wu, V. Raghupathi, “The role of information and communication technologies in global sustainability: A review,” Journal of Management for Global Sustainability, vol. 2, no. 1, pp. 123–145, 2014.
• [3] K.L.-T. Low, C.S. Lim, A. Samudhram, “Sustainable economic development: A perspective from ICT loops in developing nations,” African Journal of Business Management, vol. 5, no. 15, pp. 6138–6149, 2011, doi: 10.5897/AJBM10.529.
• [4] R.H. Courtney Jr., “A systematic approach to data security,” Computers & Security, vol. 1, pp. 99–112, 1982, doi: 10.1016/0167-4048(82)90003-7.
• [5] P. Dixon, D. Jorgenson, Handbook of Computable General Equilibrium Modeling, Elsevier, North Holland, 2012.
• [6] M. McLennan, The global risks report, 16th ed. Geneva: World Economic Forum, 2021.
• [7] J. Lewis, Z. Smith, E. Lostri. (2020). The hidden costs of cybercrime. [Online]. Available: https://www.csis.org/analysis/hidden-costs-cybercrime. [Accessed: Aug. 17, 2021].
• [8] Verizon, Data Breach Investigations Report, 2020. [Online]. Available: https://itb.dk/wp-content/uploads/2020/07/verizon-data-breach-investigations-report-2020.pdf. [Accessed: Aug. 17, 2021].
• [9] International Organization for Standardization, Information technology – Security techniques – Code of practice for information security controls (AS ISO/IEC 27002:2015), 2015. [Online]. Available: https://www.iso.org/standard/43757.html. [Accessed: Aug. 17, 2021].
• [10] P. Rathod, T.A. Hämäläinen, “A novel model for cybersecurity economics and analysis.” 17th IEEE International Conference on Computer and Information Technology, 2017, pp. 274–279, doi: 10.1109/CIT.2017.65.
• [11] E.M. Ahmed, “Modelling information and communications technology cyber security externalities spillover effects on sustainable economic growth,” Journal of the Knowledge Economy, vol. 2, pp. 1–19, 2020, doi: 10.1007/s13132-020-00627-3.
• [12] Statistics Poland. (May 10, 2024). Macroeconomic Indicators. [Online]. Available: https://stat.gov.pl/wskazniki-makroekonomiczne. [Accessed: May 17, 2024].
• [13] H. Varian, “System reliability and free riding,” in Economics of information security, L.J. Camp, S. Lewis, Eds., Dordrecht: Kluwer, 2004, pp. 1–15.
• [14] R. Anderson, T. Moore, “Information security: Where computer science, economics and psychology meet,” Philosophical Transactions of the Royal Society a Mathematical, Physical and Engineering Sciences, vol. 367, pp. 2717–2727, 2009, doi: 10.1098/rsta.2009.0027.
• [15] Palo Alto Networks. (May 04, 2024). Protect Against Russia-Ukraine Cyber Activity. [Online]. Available: https://www.paloaltonetworks.com/russia-ukraine-cyber-resources. [Accessed: May 17, 2024].
• [16] https://www.lynxbroker.pl/inwestowanie/gielda/akcje/analiza-akcji/cyberbezpieczenstwo-5-propozycji-akcji. [Accessed: Jan. 12, 2024].
• [17] https://pfrsa.pl/aktualnosci/polski-sektor-cyberbezpieczenstwa-poznaj-startupy-ktore-poprawiaja-bezpieczenstwo-w-sieci.html. [Accessed: Jan. 10, 2024].
• [18] https://dnarynkow.pl/sektor-cyberbezpieczenstwa-najciekawszy-temat-inwestycyjny-dekady. [Accessed: Jan. 07, 2024].
• [19] https://gpwatak.pl/inne/cyberbezpieczenstwo-trend-w-najblizszej-przyszlosci. [Accessed: Jan. 12, 2024].
• [20] https://www.parkiet.com/analizy-rynkowe/art19680311-ukryte-perelki-w-sektorze-it. [Accessed: Jan. 07, 2024].
• [21] https://www.investors.com/news/technology/cybersecurity-stocks. [Accessed: Jan. 12, 2024].
• [22] https://www.fool.com/investing/stock-market/market-sectors/information-technology/cybersecurity-stocks. [Accessed: Jan. 11, 2024].
• [23] https://www.kiplinger.com/investing/stocks/tech-stocks/602685/cybersecurity-stocks-tolock-up-growth. [Accessed: Jan. 10, 2024].
• [24] https://www.nasdaq.com/articles/6-cybersecurity-stocks:-which-is-the-best-to-buy. [Accessed: Jan. 07, 2024].
• [25] https://admiralmarkets.com/education/articles/shares/cybersecurity-stocks. [Accessed: Jan. 12, 2024]

Uwagi

Opracowanie rekordu ze środków MNiSW, umowa nr POPUL/SP/0154/2024/02 w ramach programu "Społeczna odpowiedzialność nauki II" - moduł: Popularyzacja nauki (2025).