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Review of Finance· 2026Q1

Hacking corporate reputations

Pat Akey, Stefan Lewellen, Inessa Liskovich, Christoph Schiller

Short summary

Unexpected data breaches decrease equity and brand values by 10-15% and increase customer churn, but firms can repair reputations by increasing charitable donations (0.5+ SD higher CSR scores) and targeted investments in political contributions, employee wages, and IT.

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