Efficiency Analysis of Mud. arabah ¯ and Leasing Firms in Pakistan

Abstract

Leasing firms consider the conventional interest-based method whereas, the mud .ā rabah firms consider the Sharī'ah-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 mud .ā rabah 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 mud .ā rabah 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 Sharī'ah-compliant mud .ā rabah 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.

Pengaruh debt to equity ratio, net receivable asset ratio, operational cost to output, dan non-performing financing terhadap return on asset perusahaan pembiayaan yang terdaftar di BEI

“…Untuk pengaruh net receivable asset ratio (NRA) terhadap return on asset (ROA), diperoleh bahwa semakin besar piutang pembiayaan yang dimiliki perusahaan maka semakin tinggi tingkat profitabilitas perusahaan, begitu juga sebaliknya. Hasil penelitian ini sejalan dengan hasil penelitian Asghar et al (2012) yang menemukan net investment to total assets berpengaruh signifikan dan positif terhadap return on asset (ROA).…”

“…Menurut Kasmir (2014), rasio utang terhadap ekuitas adalah cara untuk mengukur rasio utang terhadap ekuitas atau ekuitas. Studi oleh Asghar et al (2012) serta Nasution dan Munawaroh (2021) juga menemukan bahwa DER berdampak negatif dan signifikan pada return on asset. Berbeda dengan Ruspandi dan Asma (2014), yang menunjukkan debt to equity ratio tidak memengaruhi return on asset.…”