Abstract

With rapid development of Information Technology (IT), mobile devices and Apps are commonly adopted. Some Apps have been notified for violating the rights and interests of users, which inevitably causing negative impacts on companies. In this study, we quantify such impact in China through the event study approach, and the results show that App violation has brought significant negative impacts (-0.15%) to companies. The violations of collecting and using of personal information have larger negative impact on companies among different violations. Meanwhile, the study also finds that after the implementation of the Personal Information Protection Law of the People's Republic of China, such negative impacts of App violation problems on companies increases. Research contributes to information management yield. These findings can help companies and governments during their decision making.

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