Not Available for Download
Add Paper to My Library
Permalink
Using these links will ensure access to this page indefinitely
Copy URL

Cybersecurity Risk and Corporate Cash Holdings

Posted: 18 Oct 2022

See all articles by Jan Pieter Veerhoek

Jan Pieter Veerhoek

University of Antwerp - Department of Accounting & Finance; Maastricht University

Date Written: October 4, 2022

Abstract

This paper studies the effect of cybersecurity risk on the level of corporate cash holdings. Using a large sample of U.S. firms over the period 2007-2017, we find that when cybersecurity risk is higher, firms hold more cash. In addition, we find that the effect of cybersecurity risk is moderated by corporate governance quality. In the case of higher corporate governance quality firms that are confronted with cybersecurity risk hold less cash. Further, we find that financially unconstrained firms have higher cybersecurity risks and act on this by increasing their cash holdings. The findings are robust to alternative measures of cybersecurity risk and cash holdings.

Keywords: Cash holdings, Corporate governance, Cybersecurity

JEL Classification: G31, G32

Suggested Citation

Veerhoek, Jan Pieter, Cybersecurity Risk and Corporate Cash Holdings (October 4, 2022). Available at SSRN: https://ssrn.com/abstract=4237550

Jan Pieter Veerhoek (Contact Author)

University of Antwerp - Department of Accounting & Finance ( email )

Faculty of Applied Economics
Prinsstraat 13
Antwerp, B-2000
Belgium

Maastricht University ( email )

P.O. Box 616
Maastricht, Limburg 6200MD
Netherlands

Not Available for Download

Do you have a job opening that you would like to promote on SSRN?

Place Job Opening

Paper statistics

Abstract Views
345
PlumX Metrics

Related eJournals