Online Appendix for: 'Cybersecurity Risk and Corporate Innovation'

Abstract

This document reports additional tables discussed in the paper “Corporate Innovation in the Cyber Age”. This tables complements those included in our study. In particular, Table OA.I extends Table I, in the paper, by reporting a long list of recent working paper investigating the financial and economic consequences of data breaches. Table OA.II documents that 10K disclosures based measures of cyber-security risk predicts data preaches using non-linear model and no fixed effects. Table OA.III confirms that our R&D results are robust to dropping observations with missing R&D, as well as to the use of the Koh and Reeb (2015) to predict the value of missing R&D values. Finally, Table OA.IV confirms that the successful cyber attacks targeting rivals cause a significant increase in a firm’s cyber-security risk level.

Keywords: Cyber Risk, Hacking, Corporate Innovation, Patents, Trade Secrets

JEL Classification: G14, G32, M15, M48, O32