There’s the whole capital expenditure vs operating expenses angle too, and depending on a company’s particular situation, one might look better on paper than the other. Without going into too much detail, contractors will be hired typically to contribute to capital expenditure and employees to the latter.
This distinction is even more relevant for earnings. So companies will optimize this for taxation and accounting to win shareholder brownie points.
This distinction is even more relevant for earnings. So companies will optimize this for taxation and accounting to win shareholder brownie points.