Data analytics is reshaping many industries, providing new business opportunities and enhancing efficiency, but it also raises firms’ activity risk since they collect, process and store large amount of data.
Such data usually contain confidential and extremely valuable information and draw the attention of cyber criminals.
According to a report, published by Ponemon Institute in 2015, both the number and the cost of cyber attacks, which cause data losses to affected companies (i.e. data breaches), is growing year by year.
Firms and their stakeholders as well as regulators and researcher have put great amount of effort in preventing, constraining and estimating the cost of data breaches. Firms have improved information system security; regulators have issued security breach notification laws (SBNLs) to ensure a timing disclosure; researchers have shown that data breaches cause a loss of firm value up to 5.5%.
This empirical study investigates the effectiveness of the SBNLs the cost related to abnormal trading around the announcement of a data breach.
Session Category : Trust and Data Breach