Cybersecurity governance and corporate innovation: evidence from China

Jing Xu

Finance Research Letters, 2025, vol. 82, issue C

Abstract: Cybersecurity governance is a momentous pillar for firms to cope with digital risks in the digital era. This paper combines machine learning and text analysis to measure firm cybersecurity governance level and empirically examines its impact on corporate innovation. The empirical results suggest that cybersecurity governance significantly promotes corporate innovation through channels such as improving corporate reputation, reducing precautionary saving, and increasing risk-taking preference. Moreover, the promotion effect is more significant in small, non-state-owned firms, high-tech intensive industries, and firms located in regions with high digital economy development level. This study provides empirical evidence and decision-making references for firms and authorities to proactively carry out cybersecurity governance.

Keywords: Cybersecurity governance; Corporate innovation; Machine learning; Reputation; Precautionary saving; Risk-taking (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1544612325008785
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:finlet:v:82:y:2025:i:c:s1544612325008785

DOI: 10.1016/j.frl.2025.107619

Access Statistics for this article

Finance Research Letters is currently edited by R. Gençay

More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().