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When does the manufacturing reshoring strategy create value?
Reshoring has gained a lot of attention recently by academics and practitioners alike, and is promising to become even more relevant in the aftermath of the COVID-19 pandemic. Building on earlier research on the effects of reshoring announcements on the short-term market value of the firm, this work...
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| Main Authors: | , , , , |
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| Format: | Default Article |
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2022
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| Online Access: | https://hdl.handle.net/2134/20457219.v1 |
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| _version_ | 1818165820805611520 |
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| author | Antonios Karatzas Alessandro Ancarani Luciano Fratocchi Cristina Di Stefano Jan Godsell |
| author_facet | Antonios Karatzas Alessandro Ancarani Luciano Fratocchi Cristina Di Stefano Jan Godsell |
| author_sort | Antonios Karatzas (13235213) |
| collection | Figshare |
| description | Reshoring has gained a lot of attention recently by academics and practitioners alike, and is promising to become even more relevant in the aftermath of the COVID-19 pandemic. Building on earlier research on the effects of reshoring announcements on the short-term market value of the firm, this work employs an event-study methodology and aims to understand under which circumstances the market perceives reshoring as potentially more (or less) value-creating. The analysis of a sample of 64 reshoring instances from 2005 to 2019, announced by 54 firms from eight developed economies, suggests that investors are more confident in the firm's future cash-flow potential when: a) it invests in productive activities at home, instead of overseas, i.e. ‘kept-from-offshoring’ (as opposed to actual relocations of activities, i.e. ‘back-reshoring’); b) the reshoring instance is communicated as a ‘plan’ (rather than a fixed ‘decision’); c) no state- or government-induced financial incentives are involved; d) the motivations are primarily ‘cost-efficiency seeking’ (rather than ‘customer perceived value seeking’). |
| format | Default Article |
| id | rr-article-20457219 |
| institution | Loughborough University |
| publishDate | 2022 |
| record_format | Figshare |
| spelling | rr-article-204572192022-04-26T00:00:00Z When does the manufacturing reshoring strategy create value? Antonios Karatzas (13235213) Alessandro Ancarani (10197145) Luciano Fratocchi (13235216) Cristina Di Stefano (8942075) Jan Godsell (11416985) Manufacturing Reshoring Relocation Event-study Abnormal returns Covid-19 pandemic Shareholder wealth Reshoring has gained a lot of attention recently by academics and practitioners alike, and is promising to become even more relevant in the aftermath of the COVID-19 pandemic. Building on earlier research on the effects of reshoring announcements on the short-term market value of the firm, this work employs an event-study methodology and aims to understand under which circumstances the market perceives reshoring as potentially more (or less) value-creating. The analysis of a sample of 64 reshoring instances from 2005 to 2019, announced by 54 firms from eight developed economies, suggests that investors are more confident in the firm's future cash-flow potential when: a) it invests in productive activities at home, instead of overseas, i.e. ‘kept-from-offshoring’ (as opposed to actual relocations of activities, i.e. ‘back-reshoring’); b) the reshoring instance is communicated as a ‘plan’ (rather than a fixed ‘decision’); c) no state- or government-induced financial incentives are involved; d) the motivations are primarily ‘cost-efficiency seeking’ (rather than ‘customer perceived value seeking’). 2022-04-26T00:00:00Z Text Journal contribution 2134/20457219.v1 https://figshare.com/articles/journal_contribution/When_does_the_manufacturing_reshoring_strategy_create_value_/20457219 CC BY-NC-ND 4.0 |
| spellingShingle | Manufacturing Reshoring Relocation Event-study Abnormal returns Covid-19 pandemic Shareholder wealth Antonios Karatzas Alessandro Ancarani Luciano Fratocchi Cristina Di Stefano Jan Godsell When does the manufacturing reshoring strategy create value? |
| title | When does the manufacturing reshoring strategy create value? |
| title_full | When does the manufacturing reshoring strategy create value? |
| title_fullStr | When does the manufacturing reshoring strategy create value? |
| title_full_unstemmed | When does the manufacturing reshoring strategy create value? |
| title_short | When does the manufacturing reshoring strategy create value? |
| title_sort | when does the manufacturing reshoring strategy create value? |
| topic | Manufacturing Reshoring Relocation Event-study Abnormal returns Covid-19 pandemic Shareholder wealth |
| url | https://hdl.handle.net/2134/20457219.v1 |