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Saudi Arabian IPOs and Privatized Firms Profitability

Author

Listed:
  • Alanazi Ahmed

    (Griffith University)

  • Liu Benjamin

    (Griffith University)

  • Forster John

    (Griffith University)

Abstract

A sample of 21 privatized and IPO Saudi firms has been examined in this paper. Consistent with the relative literature on privatization and IPOs, we have documented two contrasting outcomes. First, we found that Saudi State Owned Enterprises SOEs and the private joint stock companies are showing a large improvement after-IPO as compared to the pre-IPO financial performance. On the contrary, we found a financial performance deterioration among the family owned businesses or the limited liability type of firms after the IPO compared to the pre-IPO level as measured by the return on assets (ROA) and return on sales (ROS).

Suggested Citation

  • Alanazi Ahmed & Liu Benjamin & Forster John, 2011. "Saudi Arabian IPOs and Privatized Firms Profitability," Review of Middle East Economics and Finance, De Gruyter, vol. 7(1), pages 67-90, May.
    • Handle: RePEc:bpj:rmeecf:v:7:y:2011:i:1:n:5
    DOI: 10.2202/1475-3693.1309
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    References listed on IDEAS

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