Research
Key: Presented by co-author (*); Scheduled (†)
Job Market Paper:
Cyber (In)Security and Funding Outflows in Financial Firms
About: We examine client reactions to cybersecurity breaches at U.S. publicly listed banks. Breaches trigger large outflows from uninsured wholesale funding, partly offset by insured retail deposits. Wholesale clients respond to confidentiality breaches, while retail clients react to availability or integrity breaches. Financial literacy mitigates retail outflows, whereas privacy concerns and non-bank options amplify them. Contagion appears limited, indicating cyber risk is viewed as largely idiosyncratic.
Presented at: Finance PhD Research Days (Bayes Business School), CEPR Paris Symposium † (poster)
Working Papers:
Stung into Action? Cyber Risk Management After a Breach
With: Vasso Ioannidou (Bayes Business School and CEPR) and Thomas Mosk (Queen Mary)
About: We examine how firms adjust cybersecurity after major incidents using data on disclosures and job postings for U.S. listed firms (2010–2022). Incidents lead to lasting increases in cybersecurity labor demand and advanced technology adoption, with affected firms surpassing peers. Industry and IT-similar firms also strengthen defenses. Large financial institutions react more strongly.
Presented at: Finance PhD Research Days (Bayes Business School), Tri-City Day-Ahead Workshop on the Future of Financial Intermediation (Leibniz Institute for Financial Research SAFE), Finance Seminar* (Frankfurt School of Finance & Management ), UK Women in Finance (Imperial College Business School), Finance Seminar * (VGSF), Brown Bag Seminar * (FRB Washington), Brown Bag Seminar * (Queen Mary), Finance Seminar*† (Warwick Business School)
Work in Progress:
Cybersecurity Investment of Firms: Theory and Evidence
With: Toni Ahnert (ECB), Michael Brolley (Lazaridis School), David Cimon (Bank of Canada), Vasso Ioannidou (Bayes and CEPR), Thomas Mosk (Queen Mary) and Ryan Riordan (LMU and Queen’s)
About: We model cybersecurity as an attacker-defender game and test predictions using firm-level data linking job postings to software vulnerabilities, Firms invest more when attacks are easier or costlier and less when labor is expensive. Cyber-skilled labour demand shows a hump-shaped relationship with attacker rewards, and a positive relationship with mandatory cyber attack disclosure laws.
FinTech and Small Business Lending After the PPP
About: We examine how FinTech lenders expanded in the small business credit market following the Paycheck Protection Program (PPP). Using PPP insights, we find accelerated switching from traditional to FinTech lenders in areas with high PPP FinTech activity. The shift is primarily driven by FinTechs’ faster processing, traditional lender characteristics, and banking market structure.
Presented at: Naples Summer School in Economics and Finance (poster)
Emina Ademović 