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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