Security Breaches and Company Stock Prices
What impact will the recent security breach at Target have on the company’s stock prices over the next two years?
An article by Creighton University Heider College of Business professors, John Wingender, Vasant Ravel and Ed Morse, suggests abnormal negative stock price returns will most likely result for a company following the announcement of a credit card breach.
The article tiled “A Global Perspective” was published in the “Information and Security Journal” in 2011 and utilized data from security breaches in a 10-year period involving various industries. The study found that the abnormal negative returns persist over the next several years.