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How do repeated data breaches affect firm policies?

Jin Peng, Haofei Zhang, Juan Mao and Shouhuai Xu

Applied Economics Letters, 2025, vol. 32, issue 1, 95-102

Abstract: Data breaches have been documented to adversely affect corporate reputation and market values, thus affecting firm policies. In our paper, we further explore the consequences of data breaches, especially the effect of repeated data breaches on firm policies. We find that firms increase their R&D and advertising expenses after experiencing repeated data breaches. However, firms slow down their leverage adjustments after repeated data breaches.

Date: 2025
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DOI: 10.1080/13504851.2023.2257027

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