Companies that experience a severe cyber breach see their share value fall by, on average, 1.8% on a permanent basis. What’s worse, the analysis undertaken for the report ‘The Cyber-Value Connection’ suggests the negative impact on share value is getting more severe, year-on-year. A company’s share price tells you a lot about the company and its prospects: It is the sum of the market’s expectations for a company. Here is a look:
The share price rises when the market has a positive view on the company’s future profitability and falls when that assessment turns negative.
KEY POINTS
-For a typical FTSE 100 firm