Board characteristics and cybersecurity disclosure: evidence from the UK

Abstract

The purpose of this study is to explore the influence of board of directors characteristics on the cybersecurity disclosure (CSD) of firms listed on the London Stock Exchange. The current study used an empirical approach to data collection and analysis. The independent variable is the boards of directors’ characteristics; the dependent variables are the CSD. The study analysed 2250 observation of the UK. listed firms for the period of 2011–2020. The results of the current study show a significant and positive relationship between the extent of CSD and the board size, board independence and board meeting; in terms of board gender diversity yielded an insignificant and positive relationship with the extent of CSD. The findings indicate that firms with more independent and larger board, and high meeting frequency promote cybersecurity transparency and reduce related information asymmetric with stakeholders. The analyses have implications for policymakers, top management, corporate executives and practitioners. Firms are encouraged to restructure their board to enhance its effectiveness to better support and monitor CSD. This is the first study in the UK that examined the determinants of CSD. This adds value to the literature on CSD, in addition to contributing to an understanding of the relationship between board characteristics and CSD.

Keywords: Board Characteristics, Corporate Governance, Cybersecurity Disclosure, The UK