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Internal Characteristics On Profitability Of Modarabas

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6. Conclusion:
The core objective of this article is to analyze the impact of internal characteristics (e.g. size, leverage, liquidity, operating expenses, management fee and age) on profitability of listed Modarabas in Pakistan. Pooled OLS method used to estimate the effects of internal characteristics on profitability measured as profit margin, return on investment and earnings per certificate. Data was taken from financial statement analysis (FSA) of financial firms compiled by SBP during 2011-2015. Results show that size of Modarabasis positively related to profit margin and return on investment. The possible reasons for positive association between size and profitability are, first, large Modarabashave high turnover compared to small Modarabas
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