Market Reactions to Material Cybersecurity Incident Disclosures

Maxwell Block

Papers from arXiv.org

Abstract: This study examines short-term market responses to material cybersecurity incidents disclosed under Item 1.05 of Form 8-K. Drawing on a sample of disclosures made between 2023 and 2025, daily stock price movements were evaluated over a standardized event window surrounding each filing. On average, companies experienced negative price reactions following the disclosure of a material cybersecurity incident. Comparisons across company characteristics indicate that smaller companies tended to incur more pronounced declines, while differences by sector and beta were not evident. These findings offer empirical insight into how public markets interpret cybersecurity risks when they are formally reported and suggest that firm size may influence the degree of sensitivity to such events.

Date: 2025-12
References: Add references at CitEc
Citations:

Downloads: (external link)
http://arxiv.org/pdf/2512.06144 Latest version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:arx:papers:2512.06144

Access Statistics for this paper

More papers in Papers from arXiv.org
Bibliographic data for series maintained by arXiv administrators ().