M&amp;amp;A and Cybersecurity Risk: Empirical Evidence

Download This Paper Open PDF in Browser Add Paper to My Library Share: Permalink Using these links will ensure access to this page indefinitely Copy URL M&A and Cybersecurity Risk: Empirical Evidence 63 Pages Posted: 2 Aug 2022 See all articles by Gabriele LattanzioGabriele LattanzioNazarbayev UniversityJérôme TaillardBabson College Date Written: July 22, 2022 Abstract Using novel measures of cybersecurity risk, we document that low cybersecurity risk firms are more likely to be involved in M&A transactions. Mergers are significantly less likely to be withdrawn if the target has a low cybersecurity risk profile. Merger premium are higher for mergers involving low cybersecurity risk acquirers. Deals involving low cybersecurity risk firms yield superior post-merger operating performance and are less likely to trigger goodwill impairments. Announcement returns have also started to reflect cybersecurity risk in recent years. These findings offer novel evidence on the economic impact of cybersecurity risk on the market for corporate control. Keywords: Mergers and Acquisitions, Cybersecurity Risk, M&A Withdrawal, Valuation JEL Classification: G30, G34, M15 Suggested Citation: Suggested Citation Lattanzio, Gabriele and Taillard, Jérôme, M&A and Cybersecurity Risk: Empirical Evidence (July 22, 2022). Available at SSRN: https://ssrn.com/abstract=4170093 Gabriele Lattanzio Nazarbayev University ( email ) Kazakhstan Jérôme Taillard (Contact Author) Babson College ( email ) 323 Tomasso HallBabson Park, MA 02457United States6145994184 (Phone) HOME PAGE: http://https://www.babson.edu/academics/faculty/faculty-profiles/jerome-taillard.php Download This Paper Open PDF in Browser Do you have a job opening that you would like to promote on SSRN? Place Job Opening Paper statistics Downloads 3 Abstract Views 17 PlumX Metrics Related eJournals Risk Management eJournal Follow Risk Management eJournal Subscribe to this fee journal for more curated articles on this topic FOLLOWERS 4,769 PAPERS 15,609 This Journal is curated by: Jacob Boudoukh at Interdisciplinary Center (IDC) Herzliyah, Robert Sales at Global Association of Risk Professionals Corporate Finance: Valuation, Capital Budgeting & Investment Policy eJournal Follow Corporate Finance: Valuation, Capital Budgeting & Investment Policy eJournal Subscribe to this fee journal for more curated articles on this topic FOLLOWERS 2,694 PAPERS 11,386 This Journal is curated by: René M. Stulz at Ohio State University (OSU) - Department of Finance S&P Global Market Intelligence Research Paper Series Follow S&P Global Market Intelligence Research Paper Series Subscribe to this free journal for more curated articles on this topic FOLLOWERS 2,507 PAPERS 38,005 Wharton Research Data Services (WRDS) Research Paper Series Follow Wharton Research Data Services (WRDS) Research Paper Series Subscribe to this free journal for more curated articles on this topic FOLLOWERS 2,087 PAPERS 3,733 This Journal is curated by: Robert Zarazowski at Wharton Research Data Services (WRDS), Rui Dai at Wharton Research Data Services (WRDS) Corporate Governance & Finance eJournal Follow Corporate Governance & Finance eJournal Subscribe to this fee journal for more curated articles on this topic FOLLOWERS 1,524 PAPERS 14,656 This Journal is curated by: Lucian A. Bebchuk at Harvard Law School Corporate Governance: Acquisitions, Mergers, Contests for Control, & Activism eJournal Follow Corporate Governance: Acquisitions, Mergers, Contests for Control, & Activism eJournal Subscribe to this fee journal for more curated articles on this topic FOLLOWERS 1,059 PAPERS 2,440 This Journal is curated by: Lucian A. Bebchuk at Harvard Law School Information Systems & Economics eJournal Follow Information Systems & Economics eJournal Subscribe to this fee journal for more curated articles on this topic FOLLOWERS 234 PAPERS 13,822 This Journal is curated by: Erik Brynjolfsson at National Bureau of Economic Research (NBER) Feedback Feedback to SSRN Feedback (required) Email (required) Submit If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday. Submit a Paper Section 508 Text Only Pages SSRN Quick Links SSRN Solutions Research Paper Series Conference Papers Partners in Publishing Jobs & Announcements Newsletter Sign Up SSRN Rankings Top Papers Top Authors Top Organizations About SSRN SSRN Objectives Network Directors Presidential Letter Announcements Contact us FAQs Copyright Terms and Conditions Privacy Policy We use cookies to help provide and enhance our service and tailor content. To learn more, visit Cookie Settings. This page was processed by aws-apollo5 in 0.234 seconds