Measuring leasing in Turkey and activities of leasing companies with data envelopment analysis

To revive market and reconstruct, leasing (financial leasing) is a highly effective method for sectors in which companies are at the risk of reducing production rate or not responding to demands due to lack of finance. Leasing is considered to be the best indicators of the economic situation in the country. Turkey has acquainted with leasing recently, and over the years, the use of leasing has increased. Despite this increase, in the share of the financial sector in Turkey, the leasing transactions remains far behind compared to developed countries. The increasing trend of leasing transactions took place in Turkey has slowed in recent years. Especially in 2008 the global financial crisis had a great impact on the leasing as it is in other sectors. At the same time, removal of the tax advantages of leasing companies by the government deeply affected the sector. This study aims to measure the effectiveness of leasing companies operating in Turkey, by using the method of data envelopment analysis. The study firstly provides general information about leasing. In the next sections of the study, the practices of leasing in the world are mentioned and information on leasing companies, the development of the leasing sector in Turkey, general structure and trading volume has been provided. Prior to the application section, information about the concepts of efficiency and effectiveness in data envelopment analysis, which provides information about the methods of measuring effectiveness, has been provided. In the application section, the year 2011 activity of 23 leasing companies whose data is available has been measured by the method of data envelopment analysis. Under the assumption of variable returns to scale, the output-oriented BBC analysis model has been used for analysis. As a result of the analysis, 7 of 23 leasing companies have been found active with the %79 average rate of activity. The majority of companies that are active consist of large-scale companies. Keywords: Data Envelopment Analysis, Activity, Trading Volume