We investigate the impact of customers' cybersecurity breaches (CSBs) on its supplier's relationship-specific investment decisions and the duration of supplier-customer relationship. We document a significant negative association between customer reported CSBs and suppliers'...

Cybersecurity is a significant concern for businesses worldwide among management, stakeholders, and regulators. In this paper, we explore the spillover effect of customer firms’ data breaches on their upstream supplier firms’ cost management strategies, proxied by cost stickiness, a...