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

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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.

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Notes

  1. Dyson et al. (2001) claim that the number of DMUs should be at least twice the product of the number of inputs and outputs in the model. Moreover, according to Atkinson and Wilson (1995), the bootstrap technique achieves reliable results especially for small samples, as in our case.

  2. For a detailed presentation of changes in TFPC, EC, TC, PEC and SC for each firm separately, see Tables 6, 7, 8, 9 and 10 respectively, in the “Appendix”.

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Acknowledgements

We would like to thank the editor and two anonymous reviewers for their helpful comments in an earlier version of this paper. All possible remaining errors are our own.

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Authors and Affiliations

  1. Department of Business Administration, University of Aegean, Chios, Greece

    Apostolos Christopoulos

  2. Department of Economics, Democritus University of Thrace, Komotini, Greece

    Ioannis Dokas, Sofia Katsimardou & Eleftherios Spyromitros

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  1. Apostolos Christopoulos
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  2. Ioannis Dokas
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  3. Sofia Katsimardou
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  4. Eleftherios Spyromitros
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Correspondence to Ioannis Dokas.

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Appendix

Appendix

See Tables 6, 7, 8, 9 and 10.

Table 6 Total factor productivity change analysis
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Table 7 Efficiency change analysis
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Table 8 Technological change analysis
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Table 9 Pure technical change analysis
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Table 10 Scale change analysis
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Christopoulos, A., Dokas, I., Katsimardou, S. et al. The Malmquist Productivity measure for UK-listed firms in the aftermath of the global financial crisis. Oper Res Int J 22, 1617–1634 (2022). https://doi.org/10.1007/s12351-020-00595-1

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