From Transparency to Value: How Cybersecurity Risk Disclosure Affects Investment Attraction and Market Value Enhancement
摘要
With the continuous expansion of digital technology, cybersecurity has been an essential element in the protection of sensitive data. This study highlights the dynamic relationships between cybersecurity risk, investments, as well as market value. By analyzing an annual statements and stability reports from the financial banks operating in the Arabic Gulf region between 2016 and 2024. A quantitative measurement method and several linear regression analyses were used, to assess the companies’ data. The results indicate that disclosure of cybersecurity risk plays a crucial role in increasing the investor’s confidence, contributing to increased investment flows and improving market value for companies. Statistical analysis has also shown that a clear disclosure of cybersecurity risk helps to reduce anxiety associated with cyberattacks and increase transparency to regulatory bodies and investors, thus supporting informed financial decision-making. This study emphasizes the importance of disclosure of cybersecurity as a strategic tool to improve corporate administration and strengthen risk management practices, enabling companies to effectively address digital challenges. In addition, this study makes a valuable theoretical contribution to the literature on the disclosure of risk, emphasizing that providing accurate information about cybersecurity hazards is a fundamental factor in increasing openness and credibility in a modern business environment. These findings open new paths for future studies, which are aimed at the development of improving the disclosure policy and the development of effective strategies to gain a permanent competitive advantage in international financial markets.