Saudi Arabian IPOs Productivity and Efficiency
19 Pages Posted: 24 Oct 2009
Date Written: October, 22 2009
Purpose - The main objective of the paper is to examine the performance of Saudi Arabian firms’ performance as they make the transition from private ownership into public ownership.
Design/ Methodology/ Approach - A sample of 13 Saudi IPOs performance is investigated. We use a data envelopment analysis DEA method to construct the Malmquist productivity and efficiency indices.
Findings - We have found that Saudi IPOs exhibit a significant decline in the productivity after the IPO as compared to the pre-IPO level.
Originality/ Value - The paper is the first to provide assessment for the clustering IPOs that occurred in the Kingdom of Saudi Arabia in recent years.
Keywords: Saudi initial public offerings, Firms’ performance, Productivity, DEA method, Malmquist Index
JEL Classification: D24, D57, L33
Suggested Citation: Suggested Citation