The impact of reshoring decisions on shareholder wealth

Although the reshoring has gained momentum, there is a lack of study on the shareholder value implications of reshoring decisions. This paper analyzes the shareholder wealth based on the sample of 37 US reshoring firms announced from 2006 to 2015. The findings reveal that reshoring decision has a positive impact with abnormal stock returns. Mean abnormal stock returns on reshoring announcements are 0.45%, corresponding with a mean market value change of $322.57 million. The paper suggests that benefits of reshoring goes beyond cost.