The Financial Impact of IT Security Breaches: What Do Investors Think?

Abstract

Abstract Internet security is a pervasive concern for all companies. While many previous studies have attempted to quantify financial losses resulting from IT security breaches, reliance on self-reported survey data has undermined the credibility of their results. Using an event-study methodology, this article analyzes the financial impact of cyber-breaches, by measuring the stock market reaction, and reveals several new perspectives.