Paper Number
ICIS2025-2341
Paper Type
Short
Abstract
Ransomware attacks pose significant risks to businesses, including financial losses, reputational damage, and potential legal liabilities. Despite their growing frequency, disclosure decisions remain complex, and many incidents go unreported. This study examines the short-term impact of ransomware disclosures on the stock prices of public companies, focusing on market reactions in the days immediately following the disclosure. We do not find evidence of a universal negative effect, suggesting instead that outcomes are nuanced and shaped by factors such as voluntariness, timing, media coverage, incident severity, and investor composition.
Recommended Citation
Biedova, Olga, "The Effect of Ransomware Disclosure on Stock Prices" (2025). ICIS 2025 Proceedings. 15.
https://aisel.aisnet.org/icis2025/cyb_security/cyb_security/15
The Effect of Ransomware Disclosure on Stock Prices
Ransomware attacks pose significant risks to businesses, including financial losses, reputational damage, and potential legal liabilities. Despite their growing frequency, disclosure decisions remain complex, and many incidents go unreported. This study examines the short-term impact of ransomware disclosures on the stock prices of public companies, focusing on market reactions in the days immediately following the disclosure. We do not find evidence of a universal negative effect, suggesting instead that outcomes are nuanced and shaped by factors such as voluntariness, timing, media coverage, incident severity, and investor composition.
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09-Cybersecurity