Nbfi Analysis with Regression

IJAR-BAE (March 2012)

www.setscholars.org/index.php/ijarbae Full length Original Research Paper IJAR-BAE ISSN: 1839-8456

Vol. 01. Issue 01. Article No. 03

International Journal of Applied Research in BUSINESS ADMINISTRATION & ECONOMICS

Non Bank Financial Institutions’ Profitability Indicators: Evidence from Bangladesh

Shah-Noor Rahman1, Tazrina Farah2

1

Lecturer, Department of BBA, Faculty of Business & Economics, Daffodil International University, Dhaka, Senior Lecturer, School of Business & Economics, United International University, Dhaka *Corresponding author’s e-mail: rakhi670@yahoo.com, tazrinaf@gmail.com

2

Article History

Received: 09-02-2012 Accepted: 13-03-2012 Available online: 31-03-2012 Keywords: Profitability, NBFI, Liquidity, Operating Efficiency, Capital Structure.

ABSTRACT

This paper investigates the indicators of the profitability of firms in the Non Banking Financial Institutions (NBFIs) industry of Bangladesh. Profitability of a financial institution basically depends on its Operating Efficiency, Capital Structure, Fixed Charges & Income and Liquidity Position. The current research is an endeavor to find out the key profitability indicator variables and their influence over Net Profit. Statistical techniques of simple and multiple regressions have been used to determine the relationships between variables. The analysis results show the among the independent variables the Liquidity Condition and Operating Efficiency have a considerable relationship with Profitability of Non Bank sector. So, this sector can enhance its profitability by improving its liquidity situation and by being more efficient in operations.

JEL Classification: J10, 20. J21, J22.

Citation: Rahman S., Farah T. (2012), Non Bank Financial Institutions’ Profitability Indicators: Evidence from Bangladesh. IJAR-BAE 1(1), p. 26 –32.

Copyright: @ 2012 Rahman S. et al. This is an open access article distributed under the terms of the Creative Common...