Efficiency Analysis of Modaraba and Leasing Firms in Pakistan.

Muhammad Jam e Kausar Ali Asghar, Abdul Zahid Khan, Hammad Hassan Mirza, Tariq Iqbal Khan, Muhammad Munir Khan

Article Details

Efficiency Analysis of Modaraba and Leasing Firms in Pakistan.

Authors:

Muhammad Jam e Kausar Ali Asghar, Abdul Zahid Khan, Hammad Hassan Mirza, Tariq Iqbal Khan, Muhammad Munir Khan

Publisher:

Riphah International University

Journal:

Journal of Islamic Business and Management Vol.10 Issue 2, pp.0-0

Document Type:

Article

Publication Date:

1/2020

Document Language:

English

Document ID (Org No.):

2001947849

pISSN:

2075-6291

Keywords:

Abstract:

 Leasing firms consider the conventional interest-based method whereas, the modaraba firms consider the sharia-based non-interest-based method to operate in the financial market. The role of both these Financial Institutions (FIs) is of much importance for the sustainable development of Small and Medium Enterprises (SMEs). While comparing modaraba firms and conventional leasing firms, in the first stage, the current paper has computed Technical Efficiency (TE), Pure Technical Efficiency (PTE), and Scale Efficiency (SE) of modaraba and leasing firms. Data Envelopment Analysis (DEA) is applied by following a value-added approach. Equity, liabilities, fixed assets, Operating expenses and are selected as input variables whereas, income and investments are selected as output variables. The results suggest that sharia-compliant modaraba firms are competing well with conventional leasing firms. It indicates that there is no major difference in the efficiency of both FIs. In the second stage, the study also analyzes the association of firm-specific factors with efficiency with the help of the Tobit regression model which suggests that leverage, tangibility, operating expenses, and profitability of the firm are significantly related to the efficiency of both Financial Institutions.

Article Details

Efficiency Analysis of Modaraba and Leasing Firms in Pakistan.

Authors:

Muhammad Jam e Kausar Ali Asghar, Abdul Zahid Khan, Hammad Hassan Mirza, Tariq Iqbal Khan, Muhammad Munir Khan

Publisher:

Riphah International University

Journal:

Journal of Islamic Business and Management Vol.10 Issue 2, pp.0-0

Document Type:

Article

Publication Date:

1/2020

Document Language:

English

Document ID (Org No.):

2001947849

pISSN:

2075-6291

Efficiency

DEA

Modaraba Firms

Leasing Firms

Tobit

Issues

Article Details

Efficiency Analysis of Modaraba and Leasing Firms in Pakistan.

Authors: Muhammad Jam e Kausar Ali Asghar, Abdul Zahid Khan, Hammad Hassan Mirza, Tariq Iqbal Khan, Muhammad Munir Khan

Publisher: Riphah International University

Journal: Journal of Islamic Business and Management Vol.10 Issue 2, pp.0-0

Document Type: Article

Publication Date: 1/2020

Document Language: English

Document ID (Org No.): 2001947849

pISSN: 2075-6291

Efficiency

DEA

Modaraba Firms

Leasing Firms

Tobit

Issues

Authors:

Muhammad Jam e Kausar Ali Asghar, Abdul Zahid Khan, Hammad Hassan Mirza, Tariq Iqbal Khan, Muhammad Munir Khan

Publisher:

Riphah International University

Journal:

Journal of Islamic Business and Management Vol.10 Issue 2, pp.0-0

Document Type:

Article

Publication Date:

1/2020

Document Language:

English

Document ID (Org No.):

2001947849

pISSN:

2075-6291