Work

Data breaches and corporate liquidity management

Year: 2020

Type: article

Abstract: This paper investigates the effects of data breach disclosure laws and the subsequent disclosure of data breaches on the cash policies of corporations in the United States. Exploiting a series of natural experiments regarding staggered state‐level data breach disclosure laws, we find that the passage of mandatory disclosure laws leads to an increase in cash holdings. Our finding suggests that mandatory data breach disclosure laws increase the risks related to data breaches. Further, we find firms that suffer data breaches adjust their financial policies by holding more cash as well as decreasing external finance and investment.

Source: European Financial Management

DOI: 10.1111/eufm.12289

Authors: Kwabena A. Boasiako, Michael O'Connor Keefe

Institution: Victoria University of Wellington

Language: English

Topic: Corporate Finance and Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: green

OpenAlex ID: W2900690171

FWCI: 8.376

Cites: 35

Cited by: 72

Related to: 10