The Trust Dilemma: Do CEO Vulnerability Disclosures Attract or Alarm Individual Investors?
In four experiments, we examine CEO personal vulnerability disclosures across technology and pharmaceutical industry settings, demonstrating that such disclosures can shape how individual investors evaluate firms. Disclosing vulnerabilities unrelated to the company increases investor trust and enhances evaluations of more-optimistic forecasts, as well as reduces negative reactions to bad earnings news. However, when CEO vulnerability disclosure pertains to a company-related vulnerability, investors perceived CEOs as less competent.
Gordon-Loeb Model Continues to Shape Cybersecurity Investment and Expand Its Influence in the AI Era
Developed by Smith professors Lawrence Gordon and Martin Loeb, the Gordon-Loeb Model continues to guide cybersecurity investment decisions. Its use by technology-risk firm Cadents and growing research interest highlight its relevance as organizations confront new risks associated with artificial intelligence.
Cybersecurity Budgeting: A Cyber Risk Perspective
Cybersecurity Budgeting: A Cyber Risk Perspective” updates the Gordon Loeb Model to help leaders set smarter, risk based cybersecurity budgets in an AI intensifying threat environment. The study shows that optimal cybersecurity spending generally should not exceed 37% of expected loss, giving executives a clear economic benchmark. The framework also aligns with new SEC rules and can be continuously updated as threats evolve.
Smith and Howard County State’s Attorney’s Office Partner to Bring Forensic Accounting Expertise to Financial Crime Cases
Justice for Fraud Victims will offer Howard County prosecutors free forensic accounting services through a partnership with the University of Maryland’s Smith School of Business. Students will gain supervised experience examining financial evidence to support investigations and assist fraud victims.
Smith Researchers Produce New Framework for Smarter Cybersecurity Budgeting
University of Maryland researchers apply the Gordon-Loeb Model to AI-driven cyberthreats, recommending risk-based cybersecurity budgets generally capped at 37% of expected losses. The framework lets executives update attack probabilities, potential losses and investment effectiveness as threats and conditions evolve rapidly.
Watch the Receipt: The Charitable Deduction Returns in 2026 — and So Does a Forgotten Responsibility
Samuel Handwerger explains that a restored 2026 charitable deduction will let non-itemizers claim cash gifts, but strict documentation rules remain. Donors must retain records and verify acknowledgment letters, especially for gifts of $250 or more, or risk losing legitimate deductions.