Navigating the Data Privacy Regulatory Landscape: How Firms Can withstand the Negative Performance Implications – MSI

Working Paper

Navigating the Data Privacy Regulatory Landscape: How Firms Can withstand the Negative Performance Implications

Frank Germann

University of Notre Dame

Robert W. Palmatier

University of Washington - Seattle

Natalie Chisam

University of Washington

Feb 13, 2023

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Uses a multimethod approach to study the impact on firm value reflected in stock price of privacy regulations globally across 20 countries and in the US with the advent of the California Consumer Privacy Act (CCPA).

Topics

Competition & Markets Privacy & Regulation

research recap

How Do Data Privacy Regulations Affect Firm Value?

Data privacy regulations can protect consumers but also harm firm performance and value. Regulations that require transparency may create risks and costs, especially for smaller companies with fewer resources or in less competitive markets. Companies that give consumers control or have prepared to operate in more competitive markets should fare better.

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