Abstract
The objective of the study was to measure the efficiency of Bangladeshi leasing firms through DEA and relate efficiency with profitability. Twenty-two leasing companies were selected according to simple random sampling method. Average aggregate productivity of firms over the period was only 24.17%. Average input and output technical efficiencies were 81.2% and 91.1% respectively. By changing the scale of operation, firms can increase their efficiency level by 20.43% to reach maximum productive scale size. The problem of firms lie in scale and mix efficiencies which implies that firms are yet to achieve economies of scale and scope. The firms are not producing or generating their outputs at appropriate proportions and are weak in innovation & proliferation of new services. Return on asset is significantly associated with scale efficiency EPS is significantly related to most efficiency measures. In most of the cases profitability indicators are weakly positively related with efficiency measures.
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