 Does consumer privacy act influence firm performance in the retail industry? Evidence from a US state-level law changePankaj C. Patel, Pejvak Oghazi and S. Arunachalam Journal of Business Research, 2023, vol. 162, issue C Abstract: In recent years, US states have introduced or passed consumer privacy laws. We explore the passage (June 28, 2018) and enforcement (January 1, 2020) of the California Consumer Privacy Act (CCPA) to ask whether such laws influence firm valuation. Based on organizational complexity and intangibility frameworks in the marketing literature, the law’s passage on June28,2018 did not have a meaningful stock market reaction in a sample of retail firms. Firms with higher intangibility or those with higher complexity and intangibility realized positive cumulative abnormal returns and Buy-and-Hold Abnormal Returns (BHAR). The findings are consistent after controlling for the text-based measures of privacy agreements, alternative measures of intangibility, and other robustness checks. Using the January 1, 2020, enforcement date, there were no meaningful changes in bounce rates and traffic from desktops or mobiles. The findings carry implications for policy makers, practitioners, and consumers. Keywords: California Consumer Privacy Act; Consumer privacy laws; Stock market reaction; Organizational complexity; Asset intangibility (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:162:y:2023:i:c:s0148296323002394 DOI: 10.1016/j.jbusres.2023.113881 Access Statistics for this article Journal of Business Research is currently edited by A. G. Woodside More articles in Journal of Business Research from Elsevier |
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