Do outbound links affect SEO negatively?

Outbound links through a site directory

[jamaican]

Hello again guys, my SEO have suggested that I create an on site directory that houses links to other peoples pages, the purpose is two fold it prevents me from clustering my other pages with banners from other sites that want reciprocal links and it adds size to my website.

But I really wanted to know if the site directory which would have about three hundred outbound links would affect me website PR negatively and damage me from recieving top Search Engine Optimization?

Any help guys?

[graywolf]

Outbound Links will drain PR thats why people put the links on seperate page. 300 links one page are too many. G recomends under 100 per page, I try to stay under 50 myself. Try to split them into categories widget_links.htm, stuff_links.htm, things_links.htm.

There are bad sites that you can link to. Many of these are driven by outside companies database programs. Be careful linking to them. Unless you're in the adult or casino business don't link to them either.

Try to link only sites that are of value to your visitors or you think are interesting.