Empirical research on IPO financing efficiency of state-owned enterprises based on DEA

Abstract

The state-owned enterprises play a very important role in China. The financing behavior and efficiency of state-owned enterprises not only have a great influence on its own operation competition, but also relate closely to the development and stability of the whole national economy and social economic efficiency. 51 listed companies which have performed IPO(initial public offering) in 2010 have been chosen under certain principles as samples. Data envelopment analysis (DEA)-Malmquist is used in this paper to evaluate the IPO financing efficiency of state-owned enterprises in China. It is found that the type of ultimate controller of company has played an insignificant way in IPO financing efficiency. IPO financing efficiency did not bring an increase in the efficiency of state-owned enterprises. Finally, the present paper explored the possible reasons for this phenomenon and analyzed two countermeasures to improve the IPO financing efficiency.