Cyber risk has become a major concern for companies as the frequency and
severity of cyber-attacks have increased. Giving the actual data, the current
study aims to investigate the impact of the cyber-risk on T-Mobile company
stock returns. T-Mobile company has suffered from six data breaches
between the period of 2015 and 2023. The event study was used to test the
impact of data breach announcements on T-Mobile Company's stock returns.
The findings show that data breaches have a significant impact on companies'
financial performance, as indicated by the abnormal returns observed
following the announcement of data breaches which were observed in 2015,
2018, and 2021; alternatively, it vanished in 2019, 2020, and 2023.The study
may be valuable for practitioners and academics interested in how
cyberattacks influence the financial industry. Moreover, results have a
significant implication for businesses, investors, and politicians in terms of
enhancing risk management techniques and reducing potential, financial and
reputational harm caused by such attacks. However, more research is needed
to understand the factors driving the variation in timing and magnitude of
abnormal returns following data breach announcements.