Please use this identifier to cite or link to this item: 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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