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Information security breaches and financial market reaction: the French case

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  • Mendiela, Pauline

Abstract

This study examines the impact of information security breaches on the stock returns on French companies. Using the event study methodology, we provide insights on the effect of cyberattack announcements on the market value of French companies from 2009 to 2019. We show that following cyberattack announcements, stock returns significantly decrease. We find that financial companies are more negatively impacted than other industries. Our results lead conclude that cybersecurity is now fully integrated into risk management and the overall strategy of companies. Cyber resilience appears to be the essential element to face current threats and reassure investors.

Suggested Citation

  • Mendiela, Pauline, 2021. "Information security breaches and financial market reaction: the French case," MPRA Paper 105029, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:105029
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Cybersecurity; Market reaction; Stock returns; Event Study;
    All these keywords.

    JEL classification:

    • A10 - General Economics and Teaching - - General Economics - - - General
    • G1 - Financial Economics - - General Financial Markets
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

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