The Market Doesn’t Punish Data Breaches. It Punishes Clueless CEOs.
When companies get hacked, we assume hackers are the ones vaporizing market cap. But a closer look at post-breach stock returns reveals a different truth. The market isn’t punishing the stolen data; it’s punishing the sheer panic of a CEO who fumbles the crisis response. Investors can forgive a vulnerability, but they will crucify a cover-up.