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    Data breaches and corporate liquidity management

    Boasiako, Kwabena A ORCID logoORCID: https://orcid.org/0000-0002-9078-9396 and Keefe, Michael O'Connor ORCID logoORCID: https://orcid.org/0000-0002-3286-3906 (2021) Data breaches and corporate liquidity management. European Financial Management, 27 (3). pp. 528-551. ISSN 1354-7798

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    Abstract

    This paper investigates the effects of data breach disclosure laws and the subsequent disclosure of data breaches on the cash policies of corporations in the United States. Exploiting a series of natural experiments regarding staggered state-level data breach disclosure laws, we find that the passage of mandatory disclosure laws leads to an increase in cash holdings. Our finding suggests that mandatory data breach disclosure laws increase the risks related to data breaches. Further, we find firms that suffer data breaches adjust their financial policies by holding more cash as well as decreasing external finance and investment.

    Item Type: Article (Article)
    Peer-reviewed: Yes
    Date Deposited: 02 Sep 2024 16:29
    Publisher: Wiley
    Additional Information: This is the peer reviewed version of the following article: Boasiako KA, Keefe MO. Data breaches and corporate liquidity management. Eur Financ Manag. 2021; 27: 528–551, which has been published in final form at https://doi.org/10.1111/eufm.12289. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions. This article may not be enhanced, enriched or otherwise transformed into a derivative work, without express permission from Wiley or by statutory rights under applicable legislation. Copyright notices must not be removed, obscured or modified. The article must be linked to Wiley’s version of record on Wiley Online Library and any embedding, framing or otherwise making available the article or pages thereof by third parties from platforms, services and websites other than Wiley Online Library must be prohibited.
    Divisions: Faculties > Business and Law
    Faculties > Business and Law > Finance and Economics
    Subject terms: Social Sciences, Business, Finance, Business & Economics, cash holdings, data breach, disclosure laws, financing policy, financial risk and risk management, CASH HOLDINGS, DETERMINANTS, DEREGULATION, COMPETITION, POLICY, 1502 Banking, Finance and Investment, Finance, 3501 Accounting, auditing and accountability, 3502 Banking, finance and investment
    URI: https://e-space.mmu.ac.uk/id/eprint/635364
    DOI: https://doi.org/10.1111/eufm.12289
    ISSN 1354-7798
    e-ISSN 1468-036X

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