Impact of Firms Earnings and Economic Value Added on the Market Share Value: An Empirical Study on the Islamic Banks in Bangladesh

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Helaluddin Ahmed
Helaluddin Ahmed
1 World University of Bangladesh

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This paper focuses on identifying the relationship among the firms’ earnings, economic value added and the shareholders’ 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’ 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’ traditional measures of earnings.

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No external funding was declared for this work.

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The authors declare no conflict of interest.

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No ethics committee approval was required for this article type.

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Helaluddin Ahmed. 2015. \u201cImpact of Firms Earnings and Economic Value Added on the Market Share Value: An Empirical Study on the Islamic Banks in Bangladesh\u201d. Global Journal of Management and Business Research - D: Accounting & Auditing GJMBR-D Volume 15 (GJMBR Volume 15 Issue D2): .

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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GJMBR-D Classification: JEL Code: M49
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v1.2

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May 6, 2015

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English

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This paper focuses on identifying the relationship among the firms’ earnings, economic value added and the shareholders’ 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’ 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’ traditional measures of earnings.

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Impact of Firms Earnings and Economic Value Added on the Market Share Value: An Empirical Study on the Islamic Banks in Bangladesh

Helaluddin Ahmed
Helaluddin Ahmed World University of Bangladesh

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