Cyber Attacks and Stock Market Activity
We study how financial markets react to unexpected corporate security breaches both in the short- and in the long-term. The main results show that daily excess returns drop, trading volume increases, and liquidity deteriorates upon the public disclosure of first-time corporate hacking events. The evidence suggests that trading volume increases due to selling pressure. In addition, the empirical analysis demonstrates that security breaches affect firms' policies in the long-run, up to five years after the public announcement of a security breach. These results are consistent with the hypothesis that security breaches represent unexpected negative shocks to firms' reputation, which lead investors to react regardless of the economic fundamentals.
With the use of data and concrete examples, such as ::: a mini-case study, and a focus on the top 20 global players, this ::: thesis aims at tackling Capex issues in the telecom industry by ::: covering: – Uses, levels, inefficiencies in Capex management, ::: notably via insider perspective, and their impacts on capital ::: allocation; – Financing of Capex via debt and the recent ::: development of asset monetization; – Specific trends (NSA, VNOs) ::: and M&A in the telecom industry and their impacts on Capex, via ::: the case study of the French SFR-Numericable ::: transaction.