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Cyber-attacks and stock market activity

Tosun, Onur Kemal ORCID: 2021. Cyber-attacks and stock market activity. International Review of Financial Analysis 76 , 101795. 10.1016/j.irfa.2021.101795

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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

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