What does a data breach cost? : The market’s reaction to the announcement of cybercrime

With increased digitalization and a larger internet presence, cybercrime has become more frequent in society. Examples of cybercrime are piracy, hacking where the perpetrator takes unauthorized access to data or e-theft where the perpetrator steals money from a bank or other financial institution. The cost of being exposed to cybercrime can be difficult to calculate as it affects several parts of a company such as downtime but also loyalty and trust in the company, especially companies in the financial sector. To better quantify the cost of cybercrime and the difference between sectors and type of cybercrime, this project will conduct an analysis of companies' market capitalization. The market capitalization will be analyzed through an event study, where differences in market capitalization before and after the presentation on cybercrime are used to clearly see the market's reaction to the information. The results of the study show that the market does not punish companies that have been exposed to cybercrime, neither sector nor type of cybercrime seem to affect the impact of the cybercrime