Cyber risk and corporate share repurchases

Chien-Chiang Lee (), Chih-Wei Wang, Weizheng Lin and En-Jia Chen

International Review of Financial Analysis, 2025, vol. 103, issue C

Abstract: This study investigates the relationship between cyberattacks and corporate share repurchases among U.S. firms. The results indicate that firms typically increase share repurchases following a cyberattack, driven by firm undervaluation and improvements in corporate governance. To address potential endogeneity concerns, this research employs several methods to enhance the robustness of our findings. Additionally, we observe that peer firms exhibit heightened repurchase activity in response to cyberattacks. Our heterogeneity analysis further reveals that finance, services, and high-tech firms are exceptionally responsive to cyberattacks, significantly increasing repurchase activity. Results also find that firms in states with lower economic policy uncertainty and those with more substantial financial performance are more likely to engage in share repurchases.

Keywords: Cyberattacks; Data breaches; Share repurchases; Firm undervaluation; Corporate governance (search for similar items in EconPapers)
JEL-codes: G32 G34 G38 L86 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1057521925003199
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:103:y:2025:i:c:s1057521925003199

DOI: 10.1016/j.irfa.2025.104232

Access Statistics for this article

International Review of Financial Analysis is currently edited by B.M. Lucey

More articles in International Review of Financial Analysis from Elsevier
Bibliographic data for series maintained by Catherine Liu ().