---
title: Data Breach Laws and Stock Price
url: https://www.ml-quant.com/papers/ssrn/4751586/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 4751586
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4751586
featured: 2024-03-13
citations: unknown
topic: Corporate Finance
---


# Data Breach Laws and Stock Price

Research shows that laws requiring firms to disclose data breaches increase future stock price crash risk, especially for firms with weak governance and high financial constraints.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4751586
- Identifier: SSRN 4751586
- Released: 2023-03-28
- First featured: Quant Letter No. 40 (2024-03-13): https://www.ml-quant.com/issues/2024-03-13/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Corporate Finance

## Related

- [ESG Reputation Risk Matters: An Event Study Based on Social Media Data](https://www.ml-quant.com/papers/arxiv/2307.11571/): The paper examines the influence of social media on shareholders' reactions to Environmental, Social, and Governance-related reputational risks, revealing a significant decrease in abnormal returns after an ESG-risk event.
- [Articulate AnyMesh: Open-Vocabulary 3D Articulated Objects Modeling](https://www.ml-quant.com/papers/arxiv/2502.02590/): 3D Object Modeling: Articulate Anymesh is a framework that transforms any rigid 3D mesh into an articulated object, aiding in the acquisition of new object manipulation skills in robotics.
- [Unlocking the Collateral Value of Trademarks: The Role of Asset Redeployability](https://www.ml-quant.com/papers/ssrn/4755955/): The study reveals that firms are negatively impacted by court decisions that undermine trademark redeployability, leading to a decrease in book leverage.
- ["Digitwashing": The Gap between Words and Deeds in Digital Transformation and Stock Price Crash Risk](https://www.ml-quant.com/papers/arxiv/2403.01360/): The discrepancy between a company's digital transformation promises and actual results can lead to a stock price crash, worsened by economic policy uncertainty and unprofitable firms.
- [Economic DAO Governance: A Contestable Control Approach](https://www.ml-quant.com/papers/arxiv/2403.16980/): A proposed DAO governance model uses a sequential auction mechanism to address control issues, offering a robust solution to empty voting and varied regulations.
- [Revisiting Granular Models of Firm Growth](https://www.ml-quant.com/papers/arxiv/2404.15226/): The paper explores firm growth models, presenting new theoretical and empirical findings on firm size and growth rates, and suggesting a lack of understanding about the mechanisms driving firm growth.
