Abstract

T his paper focuses on identifying the relationship among the firms#x2019; earnings, economic value added and the shareholders#x2019; value of the selected Islamic Banks in Bangladesh. The data of this study composed of five selected Islamic Banks of Dhaka Stock Exchange (DSE) covering the period of five years from 2009 to 2013. Correlation method has been utilized to find out the relationship whereas simple regression method has been used to identify the impact of firm earnings and the economic value added on change in the stock price. Findings reveal that there is strong association among the firms#x2019; earnings per share, economic value added per share and the market price per share Furthermore it is also reveal that share price of Islamic Banks in Bangladeshcan be explained more significantly by the economic value added than the banks#x2019; traditional measures of earnings.