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Why companies change privacy policies: A principal-agent perspective

Chipidza, W, Leidner, Dorothy and Burleson, D 2016, Why companies change privacy policies: A principal-agent perspective, in Proceedings of the Annual Hawaii International Conference on System Sciences, p,, pp. 4849-4858, doi: 10.1109/HICSS.2016.601.

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Title Why companies change privacy policies: A principal-agent perspective
Author(s) Chipidza, W
Leidner, Dorothy
Burleson, D
Title of proceedings Proceedings of the Annual Hawaii International Conference on System Sciences
Publication date 2016
Start page 4849
End page 4858
Total pages 10
Publisher p
Keyword(s) Science & Technology
Technology
Computer Science, Information Systems
Computer Science, Theory & Methods
Engineering, Electrical & Electronic
Computer Science
Engineering
INFORMATION
Summary Companies often update their privacy policies, but it is unclear whether these updates strengthen or weaken user privacy. Using a principal-agent theoretical lens, we analyze over 200 changes to privacy policies of five prominent Internet companies over a period of fifteen years. We find that over time, privacy policy updates are more likely to weaken, rather than strengthen, user privacy on the Internet. Moreover, analysis of pilot data suggests that companies are more likely to update their privacy policies if they experience negative revenue growth over successive financial reporting periods. Since our results show that changes in privacy policies benefit companies at the expense of user privacy, we conclude that the principal-agent problem exists in the information privacy arena.
ISBN 9780769556703
ISSN 1530-1605
DOI 10.1109/HICSS.2016.601
Indigenous content off
HERDC Research category E1.1 Full written paper - refereed
Persistent URL http://hdl.handle.net/10536/DRO/DU:30165629

Document type: Conference Paper
Collections: Faculty of Business and Law
Department of Information Systems and Business Analytics
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