Do voluntary disclosures mitigate the cybersecurity breach contagion effect?

What is it about?

This paper investigates whether cybersecurity breaches have negative consequences for non-breached firms in the same industry as the breached firm. We also examine whether voluntary disclosures can help protect a firm against these contagion effects. This study is important as cybersecurity incidents have a significant cost to firms and regulators are focusing attention on the extent of disclosures provided by firms regarding cybersecurity-related issues.

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