Do Cloud Security Announcements Affect Firm Valuation?
Recent years have witnessed unprecedented growth in adoption and offerings of cloud computing services. Security and availability risks have risen to become one of the biggest challenges and concerns for not only businesses that are transitioning into the cloud but also companies offering the cloud services. The focus of this paper is to investigate how announcements in media about security of cloud computing affects the market valuation of firms involved in the announcement. The paper uses event study methodology to analyze impact of the media announcements about cloud security. The paper also examines the impact of these announcements on the market valuation of the competitors of the companies involved in the announcements.