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The Malmquist Productivity measure for UK-listed firms in the aftermath of the global financial crisis

Author

Listed:
  • Apostolos Christopoulos

    (University of Aegean)

  • Ioannis Dokas

    (Democritus University of Thrace)

  • Sofia Katsimardou

    (Democritus University of Thrace)

  • Eleftherios Spyromitros

    (Democritus University of Thrace)

Abstract

Using a Bootstrap Malmquist Productivity Index approach, this paper investigates productivity changes of 24 high capitalization firms, listed in the London Stock Exchange over the period from 2009 to 2016. In the aftermath of the global financial crisis, we find evidence of technological and technical efficiency variations for our sample of industrial firms. Specifically, we show that, on average, only 26.2% of the examined firms managed to perform a positive increase in their Total Factor Productivity for the investigated period. There is an apparent deterioration in the technological efficiency for all firms, enhancing the view that these companies avoided investing in new technologies. However, in general, an improvement of technical efficiency is observed, meaning that firms improve the allocation of their available inputs in the production process.

Suggested Citation

  • Apostolos Christopoulos & Ioannis Dokas & Sofia Katsimardou & Eleftherios Spyromitros, 2022. "The Malmquist Productivity measure for UK-listed firms in the aftermath of the global financial crisis," Operational Research, Springer, vol. 22(2), pages 1617-1634, April.
    • Handle: RePEc:spr:operea:v:22:y:2022:i:2:d:10.1007_s12351-020-00595-1
    DOI: 10.1007/s12351-020-00595-1
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    2. Liu, Haiyue & Zhang, Ruchuan & Zhou, Li & Li, Aijun, 2023. "Evaluating the financial performance of companies from the perspective of fund procurement and application: New strategy cross efficiency network data envelopment analysis models," Energy, Elsevier, vol. 269(C).

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    More about this item

    Keywords

    Firm efficiency; DEA; Bootstrap; Malmquist Productivity Index; Accounting data; Financial analysis;
    All these keywords.

    JEL classification:

    • C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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