Personal data security and stock crash risk: Evidence from China’s Cybersecurity Law

IF 1.9 Q2 BUSINESS, FINANCE

China Journal of Accounting Research Pub Date : 2024-09-18 DOI:10.1016/j.cjar.2024.100393

Ziwei Song

引用次数: 0

Abstract

Using China’s Cybersecurity Law (CSL) as an exogenous shock, I examine how personal data security affects stock crash risk. I find that the stock crash risk of treatment firms (which collect personal data) significantly decreases after the CSL, and such decrease is larger when firms face greater personal data breach risk and have less transparent information environments before the CSL. Furthermore, treatment firms increase their investment in personal data protection after the CSL. Finally, enhanced personal data security increases firm value and promotes firms’ social responsibility to stakeholders. Overall, I provide evidence of the importance of data security for the digital economy from the perspective of capital market stability, which may present implications for data security policy worldwide.

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个人数据安全与股灾风险：来自中国《网络安全法》的证据

我以中国的《网络安全法》（CSL）作为外生冲击，研究了个人数据安全如何影响股灾风险。我发现，在 CSL 实施后，处理企业（收集个人数据的企业）的股价暴跌风险明显下降，而且当企业在 CSL 实施前面临更大的个人数据泄露风险且信息环境透明度较低时，这种下降幅度更大。此外，实施 CSL 后，受影响企业会增加对个人数据保护的投资。最后，加强个人数据安全可提高企业价值，促进企业对利益相关者承担社会责任。总之，我从资本市场稳定性的角度提供了数据安全对数字经济重要性的证据，这可能会对全球的数据安全政策产生影响。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

China Journal of Accounting Research BUSINESS, FINANCE-

CiteScore

4.70

自引率

0.00%

发文量

295

审稿时长

15 weeks

期刊介绍： The focus of the China Journal of Accounting Research is to publish theoretical and empirical research papers that use contemporary research methodologies to investigate issues about accounting, corporate finance, auditing and corporate governance in the Greater China region, countries related to the Belt and Road Initiative, and other emerging and developed markets. The Journal encourages the applications of economic and sociological theories to analyze and explain accounting issues within the legal and institutional framework, and to explore accounting issues under different capital markets accurately and succinctly. The published research articles of the Journal will enable scholars to extract relevant issues about accounting, corporate finance, auditing and corporate governance related to the capital markets and institutional environment.