Data breaches affect stock performance in the long run, study finds

As a result of investigating stock price trends of bankrupt companies over several years, it became clear that data infringement has a long-term impact on corporate stock price.

This study conducted by a research team behind the CompariTech Web portal focuses only on companies that are listed on the New York Stock Exchange and have reported 1 million violations in the past three years.

In total, this list included 28 companies from Apple, Adobe, Anthem, Community Health Systems, Dun. JP Morgan Chase, LinkedIn, Monster, T Mobile, Sony, Staples, Target, Maxx TJ, Under Armor, Vodafone, Yahoo and so on.

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CompariTech's team said in a report that "nonperforming companies are below the market in the long run".

It was 11.55% higher than NASDAQ by 28.71%, but it declined by -15.58% from NASDAQ, the average stock price after two years rose by 17.78%, the share price in 1 year increased by 8.53% on average, -3.7%

The authors of this study noted that the impact of data breach has probably declined over time, but NASDAQ's performance indicator noted that even after 3 years the damage may still be noticeable.

Other factors also placed emphasis on the outcome of action, but the fact that all companies analyzed by default are bad performance can not be ignored.

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Experts point out that companies generally hit the most and reached the lowest price in 14 days after the average price was 2.89%, 4.6% lower than NASDAQ.

In most cases, the stock price recovered with NASDAQ performance index one month later, better than before break, but declined in the long run.

CompariTech said that the healthcare sector is not the most affected, while financial and settlement companies' stock prices are the most declining.

The other is that confidential information leaks such as credit card numbers and social security numbers have declined substantially on average on the stock market performance compared to the damage of financial data.

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