Date on Honors Thesis

Fall 11-18-2016

Department

**Arthur J. Bauernfeind College of Business**

Examining Committee Member

Dr. Murphy Smith, Advisor

Examining Committee Member

Dr. Leigh Johnson, Committee Member

Examining Committee Member

Dr. Katherine Smith, Committee Member

Examining Committee Member

Dr. Warren Edminster, Committee Member

Abstract/Description

Cybercrime is a prevalent and serious threat to publicly traded companies. This rapid growing crime is referred to as “the greatest transfer of wealth in human history” or the “rounding error in a fourteen trillion-dollar economy.” Cybercrime costs companies billions of dollars through stolen assets or lost business and creates a permanent blemish to the companies’ reputation. After the announcement of cybercrime in a company, customers begin to worry about the security of their financial transactions. Known history or an announcement of cybercrime within the company can ultimately lead to lower stock prices or lost business. Lowered stock prices and lost business become legitimate concerns of financial analysists, investors, and creditors. This thesis examines multiple case studies which demonstrates the impact of cybercrime on stock prices, marketing activities and actions, and stockholder value. The case studies will examine the different types of cybercrime and its consequences to the company. Thus, this thesis provides a in depth analysis of how cybercrime or its announcement of weak cyber security affects stock prices in a company, the attitudes toward cybercrime from stockholders, and the need for businesses to increase their security programs to prevent future attacks.

Cybercrime is a prevalent and serious threat to publicly traded companies. This rapid growing crime is referred to as “the greatest transfer of wealth in human history” or the “rounding error in a fourteen trillion-dollar economy.” Cybercrime costs companies billions of dollars through stolen assets or lost business and creates a permanent blemish to the companies’ reputation. After the announcement of cybercrime in a company, customers begin to worry about the security of their financial transactions. Known history or an announcement of cybercrime within the company can ultimately lead to lower stock prices or lost business. Lowered stock prices and lost business become legitimate concerns of financial analysists, investors, and creditors. This thesis examines multiple case studies which demonstrates the impact of cybercrime on stock prices, marketing activities and actions, and stockholder value. The case studies will examine the different types of cybercrime and its consequences to the company. Thus, this thesis provides a in depth analysis of how cybercrime or its announcement of weak cyber security affects stock prices in a company, the attitudes toward cybercrime from stockholders, and the need for businesses to increase their security programs to prevent future attacks.