The impact of cyber attacks on the stock price
UNIVERSITY OF TECHNOLOGY SYDNEY
Finance Department
Research Seminars in Finance
Topic: The impact of cyber attacks on the stock price of target firms: Australian evidence
Speaker: Alex Frino, University of Wollongong
Abstract: This paper examines the cost foisted on major listed companies by ‘successful’ cyber attacks. While large volumes of research have previously been carried out and is almost entirely based on samples of companies listed on US exchanges, this is the first study to provide evidence based on Australian markets. This paper reports the results of an event study on a sample of ‘successful’ cyber attack announcements drawn from companies listed on the Australian Securities Exchange and reported in the media over the period 2010 to 2021. While research based on companies listed on US exchanges has produced mixed results in terms of the impact of the announcement of cyber attacks, I find a large and statistically significant negative stock price reaction on announcement of successful cyber-attacks. Furthermore, the liquidity of firms also deteriorates following announcement. In apparent breach of continuous disclosure requirements, most cyber attacks are reported by the media rather than by the companies themselves through the Australian Stock Exchange, and such announcements are equally ex-post price sensitive. I conclude that the out-of-pocket and reputation costs suffered by firms subject to successful cyber attacks are large and significant.
Moderator: Kathy Walsh, University of Technology Sydney
Date: Wednesday, 3rd August 2022
Time: 12-1 pm (Australian Eastern Standard Time)
Venue: On campus | Face-to-face seminar in room CB08.08.002, Building 8, University of Technology Sydney, Australia (Map of campus)
RSVP: Please email Jin Jo.
Seminar protocols:
- The seminar will run for 45 minutes, followed by a 15 minute Q&A session.
- There will be a moderator for each seminar event, who will facilitate communication and resolve any technical issues.
- Participants can raise their hand to ask questions during the presentation. The moderator will then alert the speaker at the appropriate time and either ask the questions raised or they can ask the question directly to the presenter.
Co-ordinator: Kathy Walsh
