Governance of Cybersecurity and Stock Price Crash Risk:Evidence from Textual Analysis of Chinese Listed Firms'Annual Reports
The issue of cybersecurity governance has gained wide attention from government decision-making de-partments and academia.This paper focuses on the cybersecurity governance of enterprises in capital markets and its re-lationship with financial risk.By employing deep learning methods to analyze the text of annual reports of listed compa-nies,this study constructs indicators for enterprise cybersecurity governance.Through empirical research,it reveals the relationship and mechanism between cybersecurity governance and stock price crash risk.The study finds that cybersecu-rity governance can significantly reduce stock price crash risk,and this conclusion remains robust even after conducting sensitivity tests by changing explanatory variables,adding control variables,and treating the promulgation of"Cyberse-curity Law"as a quasi-natural experiment.By reducing information asymmetry and increasing corporate social responsi-bility,enterprise cybersecurity governance lowers stock price crash risk.State-owned enterprises,larger firms,those with higher growth potential,and those with lower proportions of tangible assets are more likely to prioritize cybersecurity governance.The findings of this paper provide empirical evidence on the impact of enterprise cybersecurity governance on financial risk and offer policy recommendations for the development of relevant policies on enterprise cybersecurity governance.
Stock Price Crash RiskCybersecurity GovernanceTextual AnalysisCorporate Social Responsibility
NETL
NSTL
万方数据
