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https://hdl.handle.net/20.500.14279/30934| Title: | Cybersecurity Risk: Revised |
| Authors: | Florackis, Chris Louca, Christodoulos Michaely, Roni Michael Nicholas Weber |
| Editors: | Goldstein, Itay |
| Major Field of Science: | Social Sciences |
| Field Category: | Economics and Business |
| Keywords: | Cybersecurity;Risk |
| Issue Date: | 1-Jan-2023 |
| Source: | Review of Financial Studies, 2023, vol. 36, iss. 1, pp. 351 - 407 |
| Volume: | 36 |
| Issue: | 1 |
| Start page: | 351 |
| End page: | 407 |
| Journal: | The Review of Financial Studies |
| Abstract: | Based on textual analysis and a comparison of 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 U.S.-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. Yet, 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/20.500.14279/30934 |
| ISSN: | 08939454 |
| DOI: | 10.1093/rfs/hhac024 |
| Rights: | © The Author(s) Attribution-NonCommercial-NoDerivatives 4.0 International |
| Type: | Article |
| Affiliation : | University of Liverpool Cyprus University of Technology University of Hong Kong University of Chicago |
| Publication Type: | Peer Reviewed |
| Appears in Collections: | Άρθρα/Articles |
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