Mathematics Colloquium

Friday, April 28

Time: 3:35 p.m. — 4:35 p.m.

Location: Science Center Room 323

Tags:  Arts and Sciences, Colloquia, Mathematics, Sciences

Cost:  Free

Speaker: Kaili Chen

Advisor: Dr. Chen

Title: The Impact of Data Breaches on Firms’ Stock Price

Abstract: Data breach keeps happening and being reported even more frequently than before. Sometimes it costs the company significantly and results in the loss of shareholders’ wealth. This paper explores the stock market’s assessment of the cost of data breaches at publicly traded firms which encountered the exposure of customer or employee data. Adopting event study methodology on a sample of 89 data breaches from 2006 to 2015, we find that overall influence from data breach on stock market is limited. However, according to the cross-sectional analysis of the cumulative abnormal returns, we find that breaches involving financial information or fraud-oriented information leaking bring the market negative reaction significantly. Also the breach effect isn’t linked to either the year it happens or to the industry firm to which it belongs.

Refreshments are available at 3:00 PM in SC 313F.

The department colloquia are held every Thursday (excluding holidays) at 3:35 pm in room SC 323 unless otherwise noted. All are invited to attend. PLEASE NOTE THIS EVENT TAKES PLACE ON A FRIDAY.

Contact Information:

Name:  Paul Eloe