Cybersecurity Risk

Abstract

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Pirates without borders: The propagation of cyberattacks through firms’ supply chains

“…Our paper contributes to the nascent literature on the economics of cybercrime-an area that is getting increasing attention by both practitioners (Accenture, 2019;Verizon, 2019;Siemens, 2019;NERC, 2020) and policymakers (US Congress, 2021;Powell, 2021). The academic literature has mostly focused on examining the effects of cyber risk on financial stability (Kashyap and Wetherilt, 2019;Duffie and Younger, 2019;Kopp, Kaffenberger and Wilson, 2017;Aldasoro et al, 2020;Eisenbach, Kovner and Lee, 2021) and developing firmlevel measures of exposure to cyber risk using textual analysis (Jamilov, Rey and Tahoun, 2021;Florakis et al, 2020). Other related papers study abnormal equity returns following data breaches (Kamiya et al, 2021;Garg, 2020;Akey, Lewellen and Liskovich, 2021;Amir, Levi and Livne, 2018).…”