Cybersecurity Risk / Chris Florakis [and three others].

Format:

Book

Author/Creator:

Florakis, Chris, author.

Series:

Working paper series (National Bureau of Economic Research) ; no. 28196

Language:

English

Subjects (All):

Financial risk management.

Physical Description:

1 online resource (71 pages) : illustrations.

Place of Publication:

Cambridge, Mass. : National Bureau of Economic Research, 2020.

Summary:

We develop a novel firm-level measure of cybersecurity risk using textual analysis of cybersecurity-risk disclosures in corporate filings. The measure successfully identifies firms extensively discussing cybersecurity risk in their 10-K, displays intuitive relations with quantitative measures of cybersecurity risk disclosure language, exhibits a positive trend over time, is more prevalent among industries relying more on information technology systems, correlates with several characteristics linked to firms hit by cyber attacks and, importantly, predicts future cyber attacks. Stocks with high exposure to cybersecurity risk exhibit high expected returns on average, but they perform poorly in periods of increasing attention to cybersecurity risk.

Notes:

Description based on publisher supplied metadata and other sources.

Includes bibliographical references.