IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v90y2026ics154461232502450x.html

Expectations and market reactions to data breaches

Author

Listed:
  • Oyima-Antseleve, Ndackyssa

Abstract

Prior research reveals a broad spectrum of stock price reactions to data breach announcements. I propose that these variations are partly explained by shareholders’ expectations regarding the magnitude and scale of each breach. Additionally, I argue that the extent of subsequent sales declines in breached firms aligns with the observed stock price fluctuations around the announcement. Using data on breaches from 2005 to 2019, I find evidence supporting both propositions.

Suggested Citation

  • Oyima-Antseleve, Ndackyssa, 2026. "Expectations and market reactions to data breaches," Finance Research Letters, Elsevier, vol. 90(C).
    • Handle: RePEc:eee:finlet:v:90:y:2026:i:c:s154461232502450x
    DOI: 10.1016/j.frl.2025.109201
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S154461232502450X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2025.109201?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Corbet, Shaen & Gurdgiev, Constantin, 2019. "What the hack: Systematic risk contagion from cyber events," International Review of Financial Analysis, Elsevier, vol. 65(C).
    2. Bolster Paul & Pantalone Coleen H & Trahan Emery A, 2010. "Security Breaches and Firm Value," Journal of Business Valuation and Economic Loss Analysis, De Gruyter, vol. 5(1), pages 1-13, April.
    3. Tosun, Onur Kemal, 2021. "Cyber-attacks and stock market activity," International Review of Financial Analysis, Elsevier, vol. 76(C).
    4. Kamiya, Shinichi & Kang, Jun-Koo & Kim, Jungmin & Milidonis, Andreas & Stulz, René M., 2021. "Risk management, firm reputation, and the impact of successful cyberattacks on target firms," Journal of Financial Economics, Elsevier, vol. 139(3), pages 719-749.
    5. Eli Amir & Shai Levi & Tsafrir Livne, 2018. "Do firms underreport information on cyber-attacks? Evidence from capital markets," Review of Accounting Studies, Springer, vol. 23(3), pages 1177-1206, September.
    6. Lattanzio, Gabriele & Ma, Yue, 2023. "Cybersecurity risk and corporate innovation," Journal of Corporate Finance, Elsevier, vol. 82(C).
    7. Martins, António Miguel & Moutinho, Nuno, 2025. "Stock-Term market impact of major cyber-attacks: Evidence for the ten most exposed insurance firms to cyber risk," Finance Research Letters, Elsevier, vol. 71(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chelsea Liu & Muhammad Ali Babar, 2026. "Corporate cybersecurity risk and data breaches: A systematic review of empirical research," Australian Journal of Management, Australian School of Business, vol. 51(1), pages 62-92, February.
    2. Martins, António Miguel & Moutinho, Nuno, 2025. "Stock-Term market impact of major cyber-attacks: Evidence for the ten most exposed insurance firms to cyber risk," Finance Research Letters, Elsevier, vol. 71(C).
    3. Lee, Chien-Chiang & Wang, Chih-Wei & Lin, Weizheng & Chen, En-Jia, 2025. "Cyber risk and corporate share repurchases," International Review of Financial Analysis, Elsevier, vol. 103(C).
    4. Cao, Hung & Phan, Hieu V. & Silveri, Sabatino, 2024. "Data breach disclosures and stock price crash risk: Evidence from data breach notification laws," International Review of Financial Analysis, Elsevier, vol. 93(C).
    5. Wang, Duo & Hu, Yunge & Li, Yanxi, 2026. "Cybersecurity risk and corporate maturity mismatch," International Review of Financial Analysis, Elsevier, vol. 109(C).
    6. Akyildirim, Erdinc & Conlon, Thomas & Corbet, Shaen & Hou, Yang (Greg), 2024. "HACKED: Understanding the stock market response to cyberattacks," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 97(C).
    7. Lin, Weizheng & Wang, Chih-Wei & Li, Ying-Jie & Chen, Jian-Yun, 2025. "From green to digital: Exploring the role of ecological footprints on cybersecurity risk," Energy Economics, Elsevier, vol. 146(C).
    8. Tan, Weijie & Guo, Binhua & Zhang, Qiantao, 2025. "Cybersecurity governance and corporate market value: Perspectives from investor trust and supply chain trust," Pacific-Basin Finance Journal, Elsevier, vol. 90(C).
    9. Corbet, Shaen & Goodell, John W., 2022. "The reputational contagion effects of ransomware attacks," Finance Research Letters, Elsevier, vol. 47(PB).
    10. Zhang, Yue & Zhao, Yimeng & Huang, Ruoxuan, 2026. "Information security management and trade credit: evidence from Chinese listed firms," Journal of Contemporary Accounting and Economics, Elsevier, vol. 22(1).
    11. Garg, Mukesh & Wang, Tawei & Wilkin, Carla L., 2025. "Impact of reporting information security breaches, accounting quality, and the opportunistic disclosure of good news and bad news," International Journal of Accounting Information Systems, Elsevier, vol. 56(C).
    12. Loic Mar'echal & Alain Mermoud & Dimitri Percia David & Mathias Humbert, 2024. "Measuring the performance of investments in information security startups: An empirical analysis by cybersecurity sectors using Crunchbase data," Papers 2402.04765, arXiv.org, revised Feb 2024.
    13. Xu, Gengxi & Li, Yugang & Liu, Shanshan & Ye, Zhuhong, 2026. "Cybersecurity risk and firm growth: Empirical evidence based on text analysis," The North American Journal of Economics and Finance, Elsevier, vol. 81(C).
    14. Xu, Jing, 2025. "Cybersecurity governance and corporate innovation: evidence from China," Finance Research Letters, Elsevier, vol. 82(C).
    15. António Miguel Martins & Nuno Moutinho & Susana Cró, 2025. "Stock market effects of major cyber-attacks: evidence for breached and cybersecurity listed firms," Journal of Banking Regulation, Palgrave Macmillan, vol. 26(4), pages 868-877, December.
    16. Singh, Amanjot, 2023. "Data breaches (hacking) and trade credit," Global Finance Journal, Elsevier, vol. 57(C).
    17. Daniel Celeny & Loic Mar'echal & Evgueni Rousselot & Alain Mermoud & Mathias Humbert, 2024. "Prioritizing Investments in Cybersecurity: Empirical Evidence from an Event Study on the Determinants of Cyberattack Costs," Papers 2402.04773, arXiv.org.
    18. Huy Viet Hoang, 2025. "Who Pays for Cybersecurity? Corporate Dividends in Response to Cybersecurity Risk in US Firms," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(6), pages 18085-18123, December.
    19. Jing Chen & Elaine Henry & Xi Jiang, 2023. "Is Cybersecurity Risk Factor Disclosure Informative? Evidence from Disclosures Following a Data Breach," Journal of Business Ethics, Springer, vol. 187(1), pages 199-224, September.
    20. Daniel Celeny & Loic Mar'echal, 2024. "Cyber risk and the cross-section of stock returns," Papers 2402.04775, arXiv.org, revised Mar 2024.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finlet:v:90:y:2026:i:c:s154461232502450x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.