We examine a potential path to value-creation by cybersecurity investments: a reduction in a firm's cost of capital. Building on the existing literature on corporate finance, we suggest that given the business-ending threats of cybersecurity incidents and the importance of cybersecurity...

We analyze whether cybersecurity, as an associated cost attached to digitization, slows down the digital economy. Our identification strategy exploits the staggered adoption of security breach notification laws (SBNLs) in 47 US states, which require companies to publicly disclose data breaches....