The Impact of Reported Cybersecurity Breaches on Firm Innovation

What is it about?

An increasing number of firms cite cyber risk as a primary risk factor due to the increase in cybersecurity breach (CSB) incidents and the financial, operational, and reputational costs associated with them. Extant research focuses on the negative, short-term impacts (e.g., temporary loss of market value) from CSBs, but the long-term impact could be the most damaging. Specifically, our study investigates a firm's level of innovation in the year following a CSB as an important determinant of firm growth and profitability, one that may be disproportionately affected.

Featured Image