Cyber-attacks and stock market activity

Tosun, Onur Kemal ORCID: https://orcid.org/0000-0003-2551-1408 2021. Cyber-attacks and stock market activity. International Review of Financial Analysis 76 , 101795. 10.1016/j.irfa.2021.101795

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Abstract

I study how financial markets react to unexpected corporate security breaches in the short and the long-term. The main results show that daily excess returns drop, trading volume increases due to selling pressure, and liquidity improves upon the public disclosure of first-time corporate hacking events. The evidence from the search frequency in Google suggests that such short-lived market reaction is due to increasing investors' attention. Cyber-attacks affect firms' policies in the long run, up to 5 years after the security breach announcement. These results are consistent with the hypothesis that security breaches represent unexpected negative shocks to firms' reputations.

Item Type:	Article
Date Type:	Publication
Status:	Published
Schools:	Business (Including Economics)
Publisher:	Elsevier
ISSN:	1057-5219
Date of First Compliant Deposit:	13 May 2021
Date of Acceptance:	5 May 2021
Last Modified:	07 Nov 2023 03:11
URI:	https://orca.cardiff.ac.uk/id/eprint/141253

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