A study by cybersecurity advisory website Comparitech.com suggests that hacked companies underperform by 42% on average after three years.
According to the report, which analysed the closing share prices of 24 companies, those who experienced data breaches later struggled in the market.
The study concluded that hacked companies suffered an immediate but small decrease in share prices and that they often underperformed in the Nasdaq. More recent breaches, however, had less of a negative impact on share prices than older ones, arguably due to ‘breach fatigue’, the site suggested. Indeed breaches can be tolerated by the market over time.