Journal of International Business and Economy

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Analysis of the Effects of Security Breaches on Firm Value
Stoyu Ivanov
Volume 19, Number 2, Fall 2018 (pp. 1 ~ 25)

The purpose of this study is to examine, on intradaily market microstructure basis, fifteen recent occurrences of corporate security breaches to extend our understanding of market efficiency. We document minor average price responses to announcements of a security breach in the firms¡¯ target of an attack, contrary to many other corporate announcement studies, which document immediate price reaction to an announcement. Surprisingly, we find that the matching firms in our study have a stronger market microstructure response to the announcement of the attack instead. T his study suggests to high-frequency investors, such as hedge funds, that they should focus their attention and scarce resources on developing trading strategies on other corporate events and announcements rather than on the announcement of security breaches.

Key Words: Market Microstructure, Bid-ask Spread, Hack, Security Breach

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Creating Competitive Advantage by Going Abroad: A Case Study of Tata Steel
Tae Gyeom Kim
Volume 19, Number 2, Fall 2018 (pp. 26 ~ 47)
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Examining the Effectiveness of the Make In India Initiative in Fostering Innovation in Business
Alka Pandita, Savita Gupta, and Ravi Kiran
Volume 19, Number 1, Spring 2018 (pp. 102 ~ 122)