The impact of cyber enforcement actions on stock returns

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This paper investigates the impact of cyber enforcement actions on stock returns for a sample of US financial listed entities, by taking into account traditional banks versus either fintech banks or fintech/non-fintech shadow banks. We provide evidence of a less favorable market reaction for the last group relative to the group of traditional banks, consistently with the view that traditional banks are less technology-oriented and therefore they should be less subject to cyber enforcement actions than fintech and shadow banks.