Research
Key: Presented by co-author (*); Scheduled (†)
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 cyber incidents shape firms’ cybersecurity investment and whether that investment pays off, using job postings and employee records for U.S. listed firms (2010–2022). Incidents lead to large, persistent increases in cybersecurity human capital and technology, with affected firms surpassing peers. Firms with stronger in-house capabilities suffer smaller abnormal returns at the incident, whereas those more reliant on external cloud infrastructure suffer larger losses. Disclosure prompts precautionary investment among similarly exposed firms but also increases reliance on common providers, contributing to systemic risk.
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), LawFin Research Seminar (Goethe University)
Work in Progress:
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), Economics and Finance Workshop (QMUL)
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)
