The Effect of Malicious Cyber Activity on the US Corporate Sector

Anna Scherbina and Bernd Schlusche
Additional contact information
Bernd Schlusche: American Enterprise Institute

AEI Economics Working Papers from American Enterprise Institute

Abstract: We compile a comprehensive dataset of cyber incidents experienced by publicly traded firms and show that firms that have government and defense contracts, work on critical infrastructures and emerging technologies, and firms that possess intellectual property face a higher cyber risk. This risk also increases after an economically linked firm suffers a cyber incident. We categorize cyber events by the harm inflicted on firms’ assets and operations and show that firms suffer significant value losses across multiple cyber categories. These losses also spill over to economically linked firms. The spillover effects are likely driven by fundamentals rather than sentiment.

Keywords: Cyber Attacks; Emerging Technologies; Intellectual Property (search for similar items in EconPapers)
JEL-codes: A (search for similar items in EconPapers)
Date: 2023-03
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.aei.org/wp-content/uploads/2024/04/Sch ... 4-updated.pdf?x85095

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:aei:rpaper:100862466317

Access Statistics for this paper

More papers in AEI Economics Working Papers from American Enterprise Institute Contact information at EDIRC.
Bibliographic data for series maintained by Dave Adams, CIO ().