Workshop’s Topic: Using the enactment of the Cybersecurity Law (CSL) in China as an exogenous shock, this paper examines the effect of the prohibition of unauthorized data acquisition on firms’ cost behaviors. We document that affected firms spend less in deterring potential customer poaching through unauthorized data acquisition after the passage of CSL, resulting in lower levels of cost stickiness. Moreover, this effect is more pronounced for firms that face stronger market competition and rely more on individual customers. We further show that affected firms tend to cut slack SG&A instead of COGS spending and achieve better social performance. Overall, this study suggests that the CSL can save firms’ spending on deterring rival firms’ strategic customer poaching and encourage firms to invest in pursuing social benefits.
Time and Location 9:00-10:00 AM (GMT+8), Room A423 (School of Management)
Language: Bilingual (Chinese and English)
|
Introduction of Speakers |
|
Ph.D. CHENG Xin Renmin University of China, School of Business |
||
|
|
||
|
|
|
CHENG Xin is an assistant professor in accounting at School of Business, Renmin University of China. He obtained his Ph.D. in management from Rutgers, the State University of New Jersey. His primary research interests are corporate governance, management voluntary disclosure, corporate social responsibility and strategic cost analysis. His research has been published in Administrative Science Quarterly, Journal of Banking and Finance, Journal of Business Ethics and Journal of Accounting, Auditing and Finance. |
