Cyber Crimes Aimed at Publicly Traded Companies: Is Stock Price Affected?
E-commerce has been a boon for business. A great deal of business activity now occurs in the realm of cyberspace on the Web. The downside of cyber-business is cyber crimes, also called electronic crime or simply e-crime. Cyber crime costs publicly traded companies billions of dollars annually in stolen assets and lost business. Further, when a company falls prey to cyber criminals, this may concern customers who worry about the security of their business transactions with the company. As a result, a company can lose future business if it is perceived to be vulnerable to cyber crime. Such vulnerability may even lead to a decrease in the market value of the company, due to legitimate concerns of financial analysts, investors, and creditors.