Comparative analysis of financial performance of leasing companies : Evidence from Pakistan and India

Abstract

The current study aims to examine the firm’s financial performance in leasing companies of Pakistan and India for the period 2009-2015. The financial performance is evaluated by using financial ratios and three different models i.e. Sharpe, Treynor and Jensen. The study was conducted on top ten leasing companies of Pakistan and India. Panel data is used which is obtained by using State Bank of Pakistan’s and Reserve Bank of India (RBI) annual publication named as “Financial statement analysis of companies (non-financial) listed in Pakistan Stock Exchange (PSX) and Bombay stock exchange (BSE) for the period 2009 to 2015. It was found from the analysis that the average performance of Indian leasing companies is better than Pakistani leasing companies during the study period. In the case of India, one of the reasons of better performance is the market size which is larger than Pakistan. This study highlighted critical data helpful for managers about the activities that may gear up the financial performance of leasing companies of Pakistan.