Correlation between Debt Financing and Value Maximization inIslamic Banks: A Case Study on the Islamic Banks of Bangladesh

The study has been conducted to find the correlation between the debt financingand value maximization of Islamic banking. To answer this question this studygoes through the annual report of the financial year 2008-2009 and financialyear 2009-2010 of the all seven Islamic banks of Bangladesh. The study hasshown that the relation between debts financing to value maximization ispositively correlated except for net income, EPS and ROA. For disagreementwith the positive relationship is that some Islamic banks recently haveconverted from conventional banking to Islamic banking.