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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

Abstract: 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)
Date: 2015
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