Has your information been leaked? The impact of cybersecurity risks on the performance of tourism enterprises

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ABSTRACT The problem of data leaks concerning tourism consumers has attracted considerable attention in the tourism sector. This study employs machine learning-based text analysis techniques to assess the level of cybersecurity risks faced by publicly listed tourism-related companies in China and empirically examines the impact of these risks on the performance of tourism enterprises. Two critical pathways are identified: risk governance and risk management. The results indicate a negative correlation between cybersecurity risks and the performance of tourism enterprises, a conclusion that holds even after robustness and endogeneity tests. In regions without intellectual property courts, non-smart tourism cities, and areas with lower levels of tourism infrastructure, the negative impact of cybersecurity risks on the performance of tourism enterprises is more pronounced. We uncover underlying buffering mechanisms, suggesting that strengthening risk governance and risk management can help mitigate the performance losses incurred by tourism enterprises due to cybersecurity risks. These findings offer valuable insights for tourism enterprises in addressing cybersecurity risks and improving their performance.