Munich Personal RePEc Archive

Information security breaches and financial market reaction: the French case

Mendiela, Pauline (2021): Information security breaches and financial market reaction: the French case.

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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.

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