원문정보
초록
영어
This paper examines the impact of data breaches on bank loan terms in the private loan market. Using a sample of 420 bank breach events from 2005 to 2017, covering 14,874 loans, we find that banks offer larger loans at lower spreads following a data breach, suggesting a loss of bargaining power due to reputational damage. The economic significance is substantial, with an estimated decrease in interest income of $62.67 million for an average bank. Cross-sectional analyses reveal that the effect is stronger for more severe breaches and when borrowers face higher proprietary information risks. Additionally, we find that the impact is concentrated among reputable lenders and borrowers with more alternative financing options. We further discover that bank data breaches are associated with longer loan maturities and fewer collateral requirements. Our findings contribute to the literature on cybersecurity risks in the financial sector and highlight the significant economic costs of data breaches for banks in the loan market.
목차
1. INTRODUCTION
2. DATA AND SAMPLE
2.1. Sample selection
2.2. Empirical design
2.3. Descriptive Statistics
3. RESULTS
3.1. Bank’s data breach and loan contracts
3.2. Robustness checks
3.3. Bank’s data breach, lending, and borrower quality
3.4. Cross-sectional analysis of the effect of bank’s data breach
3.5. Bank data breaches and other loan contract terms
4. CONCLUSION
Appendix: Variable definitions
Figure
Table
Internet Appendix