The Effects of Service Crises and Recovery Resources on Market Reactions: An Event Study Analysis on Data Breach Announcements

Building on the literatures on service failure and crisis seriousness, we develop a framework to understand the effects of a specific type of service crisis (i.e., data breaches) and organizational recovery resources on the reactions of the stock market. To do so, we conduct an event study analysis with a sample of 217 data breach announcements, as our empirical context. Our analyses reveal that a firm suffers from negative abnormal stock...