Excited to share a reseach on how financial markets react to firms' data privacy law perfomance, by Dr. Pavlos Vlachos , Associate Professor of Marketing, Dr. Panagiotis Avramidis, Associate Professor of Finance and Quantitative methods and Dr. Nikolaos Panagopoulos, O'Bleness Associate Professor of Marketing, Director of Executive Education & International Sales, Ralph and Luci Schey Sales Centre, Ohio University & Visiting Professor at Alba , published at Harvard Business Review.
The resarch shows that when it comes to data privacy investments too much or too little can hurt firms’ market valuation (i.e., the relationship between firms’ data privacy performance and Tobin’s Q is non-linear, reflected in an inverted U-shaped relationship). Information about data privacy was drawn from Truvalue Labs, a company that leverages natural language processing to analyze over 100,000 sources of unstructured data about firms’ Environmental, Social, and Governance (ESG) performance.
Read the "How to Optimize Your Company’s Approach to Data Privacy" HBR article here