Factors Influencing the Profitability of Leasing Firms in Pakistan: Application of OLS and LOGIT Model

We investigated the determinants of profitability in leasing companies of Pakistan over the period 2006 to 2008. This study has applied Ordinary Least Square (OLS) Model and Logistic (Logit) models for estimation of results. It is found that the size, net investments in leasing finance and liquidity have a positive relationship with the profitability of leasing companies. Whereas, leverage and age have negative relationship with the profitability of the leasing companies.