NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
loading...

What is the Impact of Successful Cyberattacks on Target Firms?

Shinichi Kamiya, Jun-Koo Kang, Jungmin Kim, Andreas Milidonis, René M. Stulz

NBER Working Paper No. 24409
Issued in March 2018, Revised in July 2018
NBER Program(s):Corporate Finance Program

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.

download in pdf format
   (680 K)

email paper

A non-technical summary of this paper is available in the June 2018 NBER Digest.  You can sign up to receive the NBER Digest by email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w24409

 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us