An in-depth analysis of the impact of cyberattacks on the profitability of commercial banks in the United States
Journal: Journal of Global Business Insights (JGBI) (Vol.8, No. 2)Publication Date: 2023-09-01
Authors : Asligul Erkan-Barlow; Thanh Ngo; Rajni Goel; Denise W. Streeter;
Page : 120-135
Keywords : cybersecurity; data breaches; breach types; performance ownership;
Abstract
This study examined the effects of cyberattacks on the profitability of U.S. public and private commercial banks using a sample of 120 data breaches across various institutions. The results showed that cyberattacks negatively influence bank profitability, with effects more robust in the 12 quarters following a breach, especially from non-hack breaches. Large and private banks suffer more than small and public banks, with breaches resulting in decreased deposits and loans and increased liquidity. These changes are confirmed as independent channels reducing bank profitability. The results were robust after controlling for factors like multicollinearity, non-stationarity, cross-sectional dependence, and heteroskedasticity.
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