Article Title

An in-depth analysis of the impact of cyberattacks on the profitability of commercial banks in the United States

Authors

Asligul Erkan-Barlow, East Carolina UniversityFollow
Thanh Ngo, East Carolina UniversityFollow
Rajni Goel, Howard UniversityFollow
Denise W. Streeter, Howard UniversityFollow

Abstract

This study examined the effects of cyberattacks on the profitability of U.S. public and private commercial banks using a sample of 120 data breaches across various institutions. The results showed that cyberattacks negatively influence bank profitability, with effects more robust in the 12 quarters following a breach, especially from non-hack breaches. Large and private banks suffer more than small and public banks, with breaches resulting in decreased deposits and loans and increased liquidity. These changes are confirmed as independent channels reducing bank profitability. The results were robust after controlling for factors like multicollinearity, non-stationarity, cross-sectional dependence, and heteroskedasticity.

Keywords

cybersecurity, data breaches, breach types, performance ownership

ORCID Identifiers

Asligul Erkan-Barlow: https://orcid.org/0000-0001-5159-7634

Thanh Ngo: https://orcid.org/0000-0003-4950-1474

Rajni Goel: https://orcid.org/0000-0002-2516-0399

Denise W. Streeter: https://orcid.org/0000-0003-3267-1397

DOI

10.5038/2640-6489.8.2.1246

Recommended Citation

Erkan-Barlow, A., Ngo, T., Goel, R., & Streeter, D. W. (2023). An in-depth analysis of the impact of cyberattacks on the profitability of commercial banks in the United States. Journal of Global Business Insights, 8(2), 120-135. https://www.doi.org/10.5038/2640-6489.8.2.1246

Creative Commons License

This work is licensed under a Creative Commons Attribution-Noncommercial 4.0 License