Social Media Exposure Can Exacerbate the Negative Impact of a Data Breach
Increased social media exposure can adversely affects the share price of firms who’ve experienced a data breach.
According to the study, Social media and stock price reaction to data breach announcements, conducted by Dublin City University (DCU) researchers, social media exposure can exacerbate the negative impact of data breach announcements and increase the cost of these breaches, with an average additional decrease in stock price of 1.2%. The study primarily focused on Twitter, and it looked at 87 individual breaches across 73 publicly listed US companies that occurred over a four-year period.