Cyber-hacked companies underperform Nasdaq by 42% over three years

Finance companies severely affected

Companies which experience a data breach are likely to underperform the market by over 40% in the following three years, according to security, private advice and comparison website Comparitech.com.

The report, which analysed the share prices of 24 companies, found companies which were cyber hacked underperformed relative to the Nasdaq by 7.3% over one year and 41.6% over a three-year period. Paul Bischoff, researcher and privacy advocate for Comparitech.com, said: "Our one-year model shows their share prices experienced an immediate 2.84% drop versus the Nasdaq and took 38 market days to recover on average." "The model shows the stocks outperformed the Nasdaq until day 175, at which point they start falling again. Three years later, the share price had fallen 42% relative to the...