Analysis: How data breaches affect stock market share prices (2018 update) – Comparitech
Analysis: How data breaches affect stock market share prices (2018 update) – Comparitech
Analysis: How data breaches affect stock market share prices (2018 update) – Comparitech
Data breaches can have serious consequences for companies and customers but what impact do they have on share prices? We dig in to the data to find out.
Analysis: How data breaches affect stock market share prices (2018 update) – Comparitech
Results of a study were published today by Comparitech.com, who looked at the share prices of 24 companies that experienced a data breach, and found that 14 market days after a disclosed data breach, on average, the affected companies’ share prices underperformed the NASDAQ by -4.6%.
Over a longer period of time, breached companies were shown to be down against the NASDAQ -15.58% three years following a data breach.
In addition, other findings concluded:
- Finance and payment companies saw the largest drop in share price performance following a breach, while healthcare companies were least affected
- Breaches that leaked highly sensitive information like credit card and social security numbers see larger drops in share price performance on average than companies that leak less sensitive info
The full results, authored by Paul Bischoff, privacy advocate for Comparitech.com, can be viewed here: https://www.comparitech.com/blog/information-security/data-breach-share-price-2018/
Hugh Taylor
Hugh Taylor is a Certified Information Security Manager (CISM). In addition to editing Journal of Cyber Policy, he writes about cybersecurity, compliance and enterprise technology for such clients as Microsoft, IBM, SAP, HPE, Oracle, Google and Advanced Micro Devices. Prior to launching his freelance writing career, he served in executive roles at Microsoft, IBM and several venture-backed technology startups.