Cybersecurity

Data localization policies prohibit the transfer of data to foreign countries. Data localization affects the ability of organizations to prevent and respond to cyberattacks, increasing cybersecurity risks.

Data breaches affect the breached firm’s stock price. Fines for data breaches are low, and firms may underinvest in security. Litigation following a breach is less likely when firms offer free credit monitoring.

Data on firm-level hiring shows that firms increase hiring of cybersecurity workers following data breaches, particularly when the press covers the breach.