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Airline stock market reaction to CrowdStrike IT outage: an event study analysis

datacite.subject.fosCiências Sociais::Economia e Gestão
datacite.subject.sdg09:Indústria, Inovação e Infraestruturas
datacite.subject.sdg08:Trabalho Digno e Crescimento Económico
dc.contributor.authorCosta, João
dc.contributor.authorCró, Susana
dc.contributor.authorMoutinho, Nuno
dc.contributor.authorMartins, António Miguel
dc.date.accessioned2025-06-27T09:35:12Z
dc.date.available2025-06-27T09:35:12Z
dc.date.issued2025
dc.description.abstractThis study investigates the short-term market effect of CrowdStrike IT outage in the airline industry. Using an event study methodology, we evidence that airline stocks respond significantly negatively to the technology disruption within two days before and after the event day. IT disruptions, by creating friction in daily operations, such as broken schedules, delayed or cancelled flights, negative externalities, and customer dissatisfaction, lead to loss of value for airlines. The results also show that the most affected airlines are those from main CrowdStrike customers countries (mainly non-Asian countries) and an irrelevance of the business model. Finally, the extent of the stock market’s response to the CrowdStrike IT outage is influenced by other airline characteristics such as profitability, size, leverage, and cyber risk rating.eng
dc.description.sponsorshipThis paper is financed by Portuguese national funds through FCT – Fundação para a Ciência e a Tecnologia, I.P., projects numbers UIDB/00685/2020 & UID00685 CEEAplA | University of Madeira, UIDB/04007/2020 (Susana Cró) and UNIAG, UIDB/04752/2020 and UIDP/04752/2020 (Nuno Moutinho).
dc.identifier.citationCosta, João; Cró, Susana; Moutinho, Nuno; Martins, António Miguel (2025). Airline stock market reaction to CrowdStrike IT outage: An event study analysis. Finance Research Letters. ISSN 1544-6123. 77, p. 2-9
dc.identifier.doi10.1016/j.frl.2025.107145
dc.identifier.issn1544-6123
dc.identifier.urihttp://hdl.handle.net/10198/34627
dc.language.isoeng
dc.peerreviewedyes
dc.publisherElsevier
dc.relationCenter of Applied Economic Studies of the Atlantic
dc.relationApplied Management Research Unit
dc.relation.ispartofFinance Research Letters
dc.rights.urihttp://creativecommons.org/licenses/by/4.0/
dc.subjectAirlines
dc.subjectEvent study
dc.subjectStock market reaction
dc.subjectCrowdStrike
dc.subjectIT outage
dc.titleAirline stock market reaction to CrowdStrike IT outage: an event study analysiseng
dc.typejournal article
dspace.entity.typePublication
oaire.awardTitleCenter of Applied Economic Studies of the Atlantic
oaire.awardTitleApplied Management Research Unit
oaire.awardURIinfo:eu-repo/grantAgreement/FCT/6817 - DCRRNI ID/UIDB%2F00685%2F2020/PT
oaire.awardURIinfo:eu-repo/grantAgreement/FCT/6817 - DCRRNI ID/UIDP%2F04752%2F2020/PT
oaire.citation.startPage2
oaire.citation.titleFinance Research Letters
oaire.citation.volume77
oaire.fundingStream6817 - DCRRNI ID
oaire.fundingStream6817 - DCRRNI ID
oaire.versionhttp://purl.org/coar/version/c_970fb48d4fbd8a85
person.familyNameMoutinho
person.givenNameNuno
person.identifier.ciencia-idCA1B-4924-2BBA
person.identifier.orcid0000-0002-9242-8324
person.identifier.scopus-author-id57742333300
project.funder.identifierhttp://doi.org/10.13039/501100001871
project.funder.identifierhttp://doi.org/10.13039/501100001871
project.funder.nameFundação para a Ciência e a Tecnologia
project.funder.nameFundação para a Ciência e a Tecnologia
relation.isAuthorOfPublication66a63650-20a8-4110-a9f7-7f45fa84c14b
relation.isAuthorOfPublication.latestForDiscovery66a63650-20a8-4110-a9f7-7f45fa84c14b
relation.isProjectOfPublication77097340-abde-4322-b77c-d67e071141ad
relation.isProjectOfPublicationfddb1487-0635-4996-8ea1-acac8476ca6b
relation.isProjectOfPublication.latestForDiscovery77097340-abde-4322-b77c-d67e071141ad

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