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Could a cyberattack send your stock price crashing?

A 2015 Harvard Business Review article argued that data breeches at publicly traded companies don’t generally hurt stock prices. The argument went that the damage from hacks can be hard to quantify or understand, so shareholders only “react to breach news when it has direct impact on business operations” or “results in immediate changes to a company’s expected profitability.” A stock might drop when news of a cyberattack breaks, but the price recovers quickly.

News Characteristics

Date : Aug 25, 2017
Region : North America
Industry : Banks
Function : Risk Management
Sub-Function : Cyber Risk