| Abstract [eng] |
The Growing use of information technologies has made it an essential part of doing business. The emerging opportunities allow for businesses to globalize, yet at the same time new security issues come to light. These issues are called cyber incidents have been a major problem for publicly traded companies in 2016 and 2017. In this short period of time, the number of incidents has almost doubled, causing billions of dollars in losses, as well as - calling for billions of dollars of investments to prevent these issues. But even though the money is being spent to prevent them, it is still not enough. When evaluating cyber incident consequences, it is important to address not only the financial aspects, but also the social, psychological aspects – mainly the loss of good reputation. These incidents are a big issue for publicly traded companies as the investors must a tremendous amount of trust to invest in each company. Scientists have been looking for an answer, as to how these incidents affect the stock prices. While there is a high demand for such research, there is not yet too much data available or too much research conducted on this issue. The objective of this research is to evaluate the relationship between cyber incidents and stock price movement of the affected companies. The goal here – is to evaluate the affects the reports about cyber incident reports are having to the stock prices. In order to achieve that, the research must conduct the following exercises: 1. Expose the problems of information related to cyber incident reports affect on stock prices. 2. Analyze theoretical aspects of information reporting and stock market relationship. 3. Prepare the methodology for the cyber incidents reports affects on stock prices analysis. 4. Evaluate the weight that reports have on stock prices. The event study method was chosen to conduct this research. 52 cyber incident reports record were taken from a period 2015 through 2019. These incidents are associated with S&P500 companies, listed in NASDAQ and NYSE exchanges. The results had shown that the most common average excess return was generated in medium-size financial and services companies. And the highest negative excess return was generated when HACK (Unauthorized access issues) type incidents occurred. The cyber incident reports do have an impact on stock price movement. |
