[Dataloss] Data leaks hit share prices hard

[Adam Shostack]

Absent pressure from other posters, I'd encourage discussion to remain
online.  I think that dataloss reporting was more interesting way back
when, and now the interesting questions relate to how much value can we
get from observation and analysis.

I think we should use the tools we have, and try to improve them by
vigorous debate.

Apologies to Jericho and Lyger if I'm hijacking their list.

Adam


On Mon, Oct 09, 2006 at 05:54:58PM -0400, Allan Friedman wrote:
| The idea behind an event study is the critical "all other things
| equal" assumption.   A security has some fixed value, a piece of news
| becomes known to the market, and the price adjusts based on how the
| news is percieved. At least in theory :)
| 
| 
| One upshot is that the "event window" or the period of time examined
| for an impact of the new information shouldn't span too much time,
| since many other things also affect a security's value.
| 
| Happy to take a methodological discussion offline. In my experience,
| they are a fairly commonly used metric, but do not pass muster among
| the more serious of econometricians.
| 
| allan
| 
| On 10/9/06, DOpacki at covestic.com <DOpacki at covestic.com> wrote:
| >
| >
| >
| > Indeed, but aren't we talking about means of assessing the performance of
| > securities, not necessarily companies? Is it fair to conflate the two? After
| > all, the link you sent indicates that "the way that markets react to news
| > surprises is perhaps the most visible flaw in the efficient market
| > hypothesis". What are data breach disclosures, if not news surprises?
| >
| > -Dennis
| >
| >  ________________________________
| >  From: Chris Walsh
| > Sent: Mon 10/9/2006 11:50 AM
| > To: Dennis Opacki
| > Cc: Allan Friedman; dataloss at attrition.org
| > Subject: Re: [Dataloss] Data leaks hit share prices hard
| >
| >
| >
| >
| >
| > The underlying theory is generated via the so-called efficient markets
| > hypothesis, which holds that stock prices reflect all information available
| > to the market about firms' expected future returns.
| >
| > http://en.wikipedia.org/wiki/Efficient_market_hypothesis
| >
| > This is a contentious issue :^)
| >
| >
| >
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