Analyzing the financial performance of companies after suffering from reputational damage: an event study of Facebook's Cambridge Analytica scandal.

This thesis aims to investigate the consequences of severe reputation-damaging events on firms' financial performance. It does so by focusing on the Cambridge Analytica scandal, a major controversy sparked in March 2018 following the publication of two articles that revealed Facebook's involvement in user data breaches. By using the event study methodology, the study examines the direct impact of such a scandal on Facebook's stock prices and examines the potential spillover effects it had on a sample of publicly traded firms operating in the U.S. software and communication industries.