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https://hdl.handle.net/20.500.14279/26245| Title: | Cybersecurity Risk | Authors: | Florackis, Chris Louca, Christodoulos Michaely, Roni Weber, Michael |
Major Field of Science: | Social Sciences | Field Category: | Economics and Business | Issue Date: | Dec-2020 | Source: | National Bureau of Economic Research, working paper 28196 | Abstract: | Using textual analysis and comparing cybersecurity-risk disclosures of firms that were hacked to others that were not, we propose a novel firm-level measure of cybersecurity risk for all US-listed firms. We then examine whether cybersecurity risk is priced in the cross-section of stock returns. Portfolios of firms with high exposure to cybersecurity risk outperform other firms, on average, by up to 8.3% per year. At the same time, high-exposure firms perform poorly in periods of high cybersecurity risk. Reassuringly, the measure is higher in information-technology industries, correlates with characteristics linked to firms hit by cyberattacks, and predicts future cyberattacks. | URI: | https://hdl.handle.net/20.500.14279/26245 | DOI: | 10.3386/w28196 | Rights: | © NATIONAL BUREAU OF ECONOMIC RESEARCH Attribution-NonCommercial-NoDerivatives 4.0 International |
Type: | Report | Affiliation : | Cyprus University of Technology |
| Appears in Collections: | Εκθέσεις/Reports |
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