This study investigates the short-term market impact of General Data Protection Regulation (GDPR) enforcement actions on publicly listed firms using an event study methodology. In the context of the GDPR’s stringent compliance framework—enforced since May 25, 2018—monetary sanctions act as adverse information signals with potential implications for firm valuation. Focusing on high-profile enforcement cases involving fines exceeding one million euros, this analysis evaluates whether data privacy violations produce statistically significant abnormal returns. The methodology combines a window-based approach, identifying the most sensitive time intervals, with an event-specific analysis that captures heterogeneity in company reactions. A cluster analysis further highlights divergent response patterns, distinguishing firms more exposed to reputation and regulatory risk from those exhibiting greater market resilience. The results offer empirical insights into investor behavior in the face of data protection breaches.
High-Profile GDPR Fines and Their Financial Impact on Listed Firms: An Exploratory Analysis
Serena Pulcini
2026-01-01
Abstract
This study investigates the short-term market impact of General Data Protection Regulation (GDPR) enforcement actions on publicly listed firms using an event study methodology. In the context of the GDPR’s stringent compliance framework—enforced since May 25, 2018—monetary sanctions act as adverse information signals with potential implications for firm valuation. Focusing on high-profile enforcement cases involving fines exceeding one million euros, this analysis evaluates whether data privacy violations produce statistically significant abnormal returns. The methodology combines a window-based approach, identifying the most sensitive time intervals, with an event-specific analysis that captures heterogeneity in company reactions. A cluster analysis further highlights divergent response patterns, distinguishing firms more exposed to reputation and regulatory risk from those exhibiting greater market resilience. The results offer empirical insights into investor behavior in the face of data protection breaches.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
