AAA Spark Meeting of the Regions

Knowledge Spillovers and the Risk of Cybersecurity Breaches

• In Event: Cybersecurity and Accounting Systems

Abstract

Our study examines the relationship between firm knowledge spillovers to rivals and firm cybersecurity breaches. Knowledge spillovers to rivals could result in an exposure of the value of firm scientific research, information risks, eroded competitive advantage, reduced firm performance, and hence increasing the likelihood of cybersecurity breaches. We find that firms with more past knowledge spillover experience will be more likely to be breached. Further, high market competition will strengthen such a positive relationship. After the breach, firms are more likely to use their internal research in their inventions.

Authors

• Hanbing Xing, Florida Atlantic University

• JiangBo HuangFu, Florida Atlantic University