The Impact of Cyber‐Attacks on the Stock Prices, Bid‐Ask Spreads and Trading Volume of Target Firms: Australian Evidence

ABSTRACT We examine announcements of cyber‐breaches by firms listed on the Australian Securities Exchange to assess price and liquidity effects under Australia's continuous disclosure regime. Using an event study method, we find cumulative abnormal returns of −8.4% over a −30 to +30 day window, preceded by information leakage and followed by persistently wider bid–ask spreads and elevated trading volumes. Impacts are stronger when breaches involve financial loss and are smaller for firms in the ASX 100 Index. Many breaches are first reported via mainstream media rather than through the Australian Securities Exchange, raising compliance concerns with listing rules. Our findings provide guidance for boards, regulators, and investors on the pricing of cyber risk and continuous disclosure obligations.

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Publication Details

Journal
Accounting and Finance
Published
2026-01-06
DOI
https://doi.org/10.1111/acfi.70139
Primary Topic
Auditing, Earnings Management, Governance
Type
article
Field-Weighted Citation Impact
0.00
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article

The Impact of Cyber‐Attacks on the Stock Prices, Bid‐Ask Spreads and Trading Volume of Target Firms: Australian Evidence

Vito Mollica, Alex Frino, Robert Gaudiosi
Accounting and Finance
Auditing, Earnings Management, Governance
article

The Impact of Cyber‐Attacks on the Stock Prices, Bid‐Ask Spreads and Trading Volume of Target Firms: Australian Evidence

Vito Mollica, Alex Frino, Robert Gaudiosi
article en

Abstract

ABSTRACT We examine announcements of cyber‐breaches by firms listed on the Australian Securities Exchange to assess price and liquidity effects under Australia's continuous disclosure regime. Using an event study method, we find cumulative abnormal returns of −8.4% over a −30 to +30 day window, preceded by information leakage and followed by persistently wider bid–ask spreads and elevated trading volumes. Impacts are stronger when breaches involve financial loss and are smaller for firms in the ASX 100 Index. Many breaches are first reported via mainstream media rather than through the Australian Securities Exchange, raising compliance concerns with listing rules. Our findings provide guidance for boards, regulators, and investors on the pricing of cyber risk and continuous disclosure obligations.

Accounting and Finance
The University of Notre Dame Australia (AU), Macquarie University (AU)
Openalex Percentile: Top 96%
Auditing, Earnings Management, Governance
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The Impact of Cyber‐Attacks on the Stock Prices, Bid‐Ask Spreads and Trading Volume of Target Firms: Australian Evidence — Vito Mollica, Alex Frino, et al. · Accounting and Finance (2026) | TGRS Research Map | TGRS