Efficiency analysis of Mudarabah and leasing firms in Pakistan
Joint Authors
Khan, Tariq Iqbal
Ali Asghar, Muhammad Jam E. Kawthar
Khan, Abd al-Zahid
Mirza, Hammad Hassan
Khan, Muhammad Munir
Source
Journal of Islamic Business and Management
Issue
Vol. 10, Issue 2 (31 Dec. 2020), pp.390-401, 12 p.
Publisher
Riphah International University Riphah Centre of Islamic Business
Publication Date
2020-12-31
Country of Publication
Pakistan
No. of Pages
12
Main Subjects
Abstract EN
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.
American Psychological Association (APA)
Ali Asghar, Muhammad Jam E. Kawthar& Khan, Abd al-Zahid& Mirza, Hammad Hassan& Khan, Tariq Iqbal& Khan, Muhammad Munir. 2020. Efficiency analysis of Mudarabah and leasing firms in Pakistan. Journal of Islamic Business and Management،Vol. 10, no. 2, pp.390-401.
https://search.emarefa.net/detail/BIM-1429390
Modern Language Association (MLA)
Ali Asghar, Muhammad Jam E. Kawthar…[et al.]. Efficiency analysis of Mudarabah and leasing firms in Pakistan. Journal of Islamic Business and Management Vol. 10, no. 2 (2020), pp.390-401.
https://search.emarefa.net/detail/BIM-1429390
American Medical Association (AMA)
Ali Asghar, Muhammad Jam E. Kawthar& Khan, Abd al-Zahid& Mirza, Hammad Hassan& Khan, Tariq Iqbal& Khan, Muhammad Munir. Efficiency analysis of Mudarabah and leasing firms in Pakistan. Journal of Islamic Business and Management. 2020. Vol. 10, no. 2, pp.390-401.
https://search.emarefa.net/detail/BIM-1429390
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references : p. 399-401
Record ID
BIM-1429390