Abstract :
The purpose of this research to describe and compare the performance of Islamic banks and
conventional banks using performance measures based value-added. They are Financial
Value Added (FVA) and Economic Value Added (EVA). This research also examined the
effect of FVA and EVA on conventional banks to value of the firm. This research used
secondary data and judgment sampling as a sampling technique. Based on the criteria
sample used in this research, sample in this research consist of 21 Islamic banks and 61
conventional banks for the research period of 2007 through 2012. Analysis techniques used
in this research are descriptive analysis, independent sample t-test, and multiple regressions
analysis. The result of this analysis shows that FVA on Islamic banks and conventional banks
increased during 2007 and 2012. However, EVA on Islamic banks and conventional banks
has decreased and performance of Islamic banks and conventional banks are different. FVA
in Islamic banks is higher than FVA on conventional banks, but EVA Islamic banks is lower
than conventional banks. FVA?s conventional bank has a positive effect on value of the firm
and EVA?s bank conventional has no effect on value of the firm.
Key words: Financial Value Added, Economic Value Added, Value of The Firm, Islamic
Bank, Conventional Bank.