Outsourcing and the financial performance: a sample of us companies, 2000-2009
Pedro L. Ortiz Santos and
Ahmad H. Juma'h
Revista de Ciencias Económicas, 2015, vol. 33, issue 2
This study evaluated the relation between outsourcing and firm's financial performance in the USA (2000-2009). To measure the effect of outsourcing on the company’s profitability, operating profit margin before interest and taxes, return on assets, and return on equity were used. To measure the effect of outsourcing on the company’s liquidity, quick ratio, total debt to total assets, and total debt to total equity were used. The study used the percentages of changes in financial parameters in the outsourcing year (t0) and subsequent year (t1), no indications of significance (α = 0.05) were found. Also, no significant (α = 0.05) results were found with respect to profitability and liquidity for companies with outsourcing announcements and those without announcements.
Keywords: PROFITABILITY; LIQUIDITY; ANNOUNCEMENTS; CONTRACTS; FINANCIAL CRISIS; COST REDUCTION; REORGANIZATION SIGNAL; RENTABILIDAD; LIQUIDEZ; ANUNCIOS; CONTRATOS; CRISIS FINANCIERA; REDUCCIÓN DE COSTO; SEÑAL DE REORGANIZACIÓN (search for similar items in EconPapers)
JEL-codes: A (search for similar items in EconPapers)
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:rce:rvceco:22213
Access Statistics for this article
Revista de Ciencias Económicas is currently edited by Fabricio Marín Rodríguez
More articles in Revista de Ciencias Económicas from Instituto de Investigaciones en Ciencias Económicas, Universidad de Costa Rica Contact information at EDIRC.
Bibliographic data for series maintained by Luis J. Hall ().