The impact of managerial myopia on cybersecurity: Evidence from data breaches

• Main Authors: CHEN, Wen, LI, Xing, WU, Haibin, ZHANG, Liandong
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2024
• Subjects: Cybersecurity; Data breach; Discretionary expenditures; Managerial myopia; Peer effect; Real earnings management; Accounting; Information Security; Management Information Systems
• Online Access: https://ink.library.smu.edu.sg/soa_research/2047; https://ink.library.smu.edu.sg/context/soa_research/article/3074/viewcontent/ManagerialMyopiaCybersecurity_av.pdf
• Institution: Singapore Management University

Using a sample of U.S. firms for the period 2005–2017, we provide evidence that managerial myopic actions contribute to corporate cybersecurity risk. Specifically, we show that abnormal cuts in discretionary expenditures, our proxy for managerial myopia, are positively associated with the likelihood...