This paper examines how cybersecurity risk in crypto securities affects asset returns. Hackers steal cryptocurrencies … by exploiting bugs in the code. We develop a novel measure of ex-ante cybersecurity risk by counting bug reports from … GitHub, which houses the source code that produces crypto assets. A high cybersecurity risk predicts a lower return: a one …

The SEC has expressed concern that some emerging risks - most notably, cybersecurity risk - exhibit an insufficient … level and quality of disclosure. Policymakers envision a board role in cybersecurity risk management, but whether that role … whether expertise at the board of directors affects cybersecurity risk disclosure. I find that the level and quality of risk …

We develop a novel firm-level measure of cybersecurity risk using textual analysis of cybersecurity-risk disclosures in … corporate filings. The measure successfully identifies firms extensively discussing cybersecurity risk in their 10-K, displays … intuitive relations with quantitative measures of cybersecurity risk disclosure language, exhibits a positive trend over time …

We develop a novel firm-level measure of cybersecurity risk using textual analysis of cybersecurity-risk disclosures in … corporate filings. The measure successfully identifies firms extensively discussing cybersecurity risk in their 10-K, displays … intuitive relations with quantitative measures of cybersecurity risk disclosure language, exhibits a positive trend over time …

Using textual analysis and comparing cybersecurity-risk disclosures of firms that were hacked to others that were not …, we propose a novel firm-level measure of cybersecurity risk for all US-listed firms. We then examine whether … cybersecurity risk is priced in the cross-section of stock returns. Portfolios of firms with high exposure to cybersecurity risk …

In our paper “Cybersecurity Risk” (Florackis, C., Louca, C., Michaely, R. and M. Weber. 2023. The Review of Financial … cybersecurity risk using textual analysis of cybersecurity-risk disclosures in “Item 1A. Risk Factors” section of 10-K statements …. The measure successfully identifies firms extensively discussing cybersecurity risk in their 10-K, displays intuitive …

We develop a novel firm-level measure of cybersecurity risk using textual analysis of cybersecurity-risk disclosures in … corporate filings. The measure successfully identifies firms extensively discussing cybersecurity risk in their 10-K, displays … intuitive relations with quantitative measures of cybersecurity risk disclosure language, exhibits a positive trend over time …

This paper highlights the emerging supervisory practices that contribute to effective cybersecurity risk supervision … establish and implement a framework for cyber risk supervision. Cyber risk often stems from malicious intent, and a successful … cyber attack-unlike most other sources of risk-can shut down a supervised firm immediately and lead to systemwide …