What is the Impact of Successful Cyberattacks on Target Firms?

Shinichi Kamiya, Jun-Koo Kang, Jungmin Kim, Andreas Milidonis () and René Stulz

No 24409, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We examine which firms are targets of cyberattacks and how they are affected. We find that cyberattacks cause firms to reassess the risks that they are exposed to and their consequences, so that they have real effects on firm policies even when targets are not financially constrained. Cyberattacks are more likely to occur at more visible firms, firms with more intangible assets, and firms with less board attention to risk management. Attacks where personal financial information is appropriated are associated with a negative stock-market reaction, a decrease in sales growth for large firms and retail firms, an increase in leverage, a deterioration in financial health, and a decrease in investment in the short run. Firms further respond to cyberattacks by reducing CEO bonuses and risk-taking incentives and by strengthening their risk management.

JEL-codes: G14 G32 G34 G35 (search for similar items in EconPapers)
Date: 2018-03
New Economics Papers: this item is included in nep-bec, nep-cfn and nep-rmg
Note: CF
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Citations: View citations in EconPapers (12)

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Working Paper: What Is the Impact of Successful Cyberattacks on Target Firms? (2018)
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