Paper Type
ERF
Abstract
This study examines stock market responses to cybersecurity product launch announcements by publicly traded U.S. firms. Using a preliminary sample of 14 announcements identified from news reports and press releases between 2021 and 2024, we estimate abnormal returns with the Fama–French–Carhart model. Average short-window reactions are modestly negative, suggesting that launch announcements do not uniformly create shareholder value in the immediate term. However, reactions vary across announcements: AI-driven launches and launches by firms with higher R&D intensity generate more favorable short-window returns. These findings suggest that investors respond more favorably when launch announcements signal stronger technological novelty and innovation credibility. The study extends research on the market consequences of proactive cybersecurity actions and identifies conditions under which cybersecurity innovation may be valued positively.
Paper Number
1649
Recommended Citation
Chen, Haoze; Lu, Xuecong; Wei, Yuyan Dr.; and Liu, Si, "Stock Reactions to Cybersecurity Product Introductions: The Critical Roles of AI-Driven Innovation and R&D Intensity" (2026). AMCIS 2026 Proceedings. 2.
https://aisel.aisnet.org/amcis2026/dite/sig_dite/2
Stock Reactions to Cybersecurity Product Introductions: The Critical Roles of AI-Driven Innovation and R&D Intensity
This study examines stock market responses to cybersecurity product launch announcements by publicly traded U.S. firms. Using a preliminary sample of 14 announcements identified from news reports and press releases between 2021 and 2024, we estimate abnormal returns with the Fama–French–Carhart model. Average short-window reactions are modestly negative, suggesting that launch announcements do not uniformly create shareholder value in the immediate term. However, reactions vary across announcements: AI-driven launches and launches by firms with higher R&D intensity generate more favorable short-window returns. These findings suggest that investors respond more favorably when launch announcements signal stronger technological novelty and innovation credibility. The study extends research on the market consequences of proactive cybersecurity actions and identifies conditions under which cybersecurity innovation may be valued positively.
Comments
SIG DITE