Bin Jiang1, James A. Belohlav1, Scott T. Young1
1Charles H. Kellstadt Graduate School of Business, DePaul University, 1 E. Jackson Blvd., Ste 7000, Chicago, IL 60604, USA
Tóm tắt
AbstractPrevious studies on the effects of outsourcing have relied largely on anecdotal evidence, non‐financial metrics or accounting‐based measures that ignore intangible value. This study views outsourcing effects from its future revenue‐generation potential, using market value. The relation between firms’ market valuation and outsourcing decisions is investigated using a cross‐sectional valuation approach. Results based on Japanese manufacturing industries data from 1994 to 2002 indicate that core business‐related outsourcing, offshore outsourcing, and shorter‐term outsourcing have positive effects on outsourcing firms’ market value. In contrast, non‐core business‐related outsourcing, domestic outsourcing, and longer‐term outsourcing are not found to enhance firm value.
