Does Islamic Corporate Governance Moderation The Influence of Sharia Financial Performance Toward Islamic Social Reporting?

Fatimah Az-zahra Wairooy(1*), Slamet Haryono(2)

(1) Universitas Islam Negeri Sunan Kalijaga Yogyakarta, Indonesia
(2) Universitas Islam Negeri Sunan Kalijaga Yogyakarta, Indonesia
(*) Corresponding Author

Abstract

This study examine to retest the influence of Sharia Financial Performance towards Islamic Social Reporting with Islamic Corporate Governance as a moderate variable (empirical study on Indonesia Islamic Commercial Bank from 2016-2021). The hypothesis examine by using MRA regression and panel data regression. The population in this research are all the Islamic Commercial Banks that listed on OJK from 2016-2021. The sampling methods that used in this research is purposive sampling and could manage to obtained 66 sample from 11 Islamic Commercial Banks. The results shows that: (1) Return On Assets, Ruturn On Equity, and Financing to Debt Ratio influenced the disclosure did Islamic Social Reporting; (2) Capital Adequacy Ratio, Debt to Equity Ratio, and Investment Account Holder did not influenced the Islamic Social Reporting; and (3) Frequency of board of commissioner could influenced Financing to Debt Ratio, and Investment Account Holder towards deepening of Islamic Social Reporting, Frequency of audit committee meeting could be moderating Investment Account Holder towards strengthening Islamic Social Reporting, While the frequency of sharia supervisory board meeting could moderating Financing to Debt Ratio towards Islamic Social Reporting.

Keywords

Islamic Corporate Governance (ICG), Islamic Social Reporting (ISR), Sharia Financial Performance.

Full Text:

PDF

References

AAOIFI. (2015). Shari’ah Standards. Dar AlMaiman. https://www.ptonline.com/articles/how-to-get-better-mfi-results

Afandy, C., Usman, B., & Zoraya, I. (2021). Islamic Corporate Governance ( ICG ) On Sharia Financial Performance with Islamic Social Reporting ( ISR ) As A Moderating Variable. 22916–22929.

Agus Tri Basuki. (2016). Analisis Regresi Dalam Penelitian Ekonomi Dan Bisnis Dilengkapi Aplikasi SPSS & Eviews. Rajawali Pers.

Agus Widarjono. (n.d.). Ekonometrika Pengantar dan Aplikasi Eviews (4th ed.). UPP STIM YKPN.

Amyulianthy, R., Azizah, W., & Satria, I. (2020). Islamic Social Reporting in Shariah Banks in Indonesia. Review of Integrative …, 9(1), 171–183.

Anita Dwi Utami. (2022). Islamic Social Reporting Disclosure Study Of Indonesia And Malaysia Islamic Bank. Journal of Business Accounting and Finance, 4(2), 63–72. https://ejournal.unsap.ac.id/index.php/job/article/view/554

Atiqah, & Rahma, Y. (2018). Islamic Corporate Governance and Islamic Social Responsibility Towards Maqashid Shariah. KnE Social Sciences, 3(8), 70. https://doi.org/10.18502/kss.v3i8.2501

Badrul Munir, M. binti, & Ahmad Bustamam, U. S. (2017). Camel Ratio on Profitability Banking Performance (Malaysia Versus Indonesia). International Journal of Management, Innovation & Entrepreneurial Research, 3(1), 30–39. https://doi.org/10.18510/ijmier.2017.314

Ben Abdallah, M., & Bahloul, S. (2022). Further evidence on the effect of financial performance and governance on the Islamic banks’ disclosure. Asian Journal of Accounting Research. https://doi.org/10.1108/AJAR-09-2021-0156

Diansari, R. E., Imama, N., & Nusron, L. A. (2022). Islamic Social Reporting of Islamic Banking in Indonesia. KnE Social Sciences, 2022, 880–895. https://doi.org/10.18502/kss.v7i14.12039

Dinar Standard, & Salam Gateway. (2022). State of the Global Islamic Economy Report: Unlocking Opportunity. State of the Global Islamic Economy Report 2020/21, 4–202. https://haladinar.io/hdn/doc/report2018.pdf

Ghozali, M., Azmi, M. U., & Nugroho, W. (2019). Perkembangan Bank Syariah Di Asia Tenggara: Sebuah Kajian Historis. Falah: Jurnal Ekonomi Syariah, 4(1), 44. https://doi.org/10.22219/jes.v4i1.8700

Hanif, N. (2019). Do CAMEL Indicators Contribute Towards Profitability of Islamic Banks? COMSATS Journal of Islamic Finance, 4(1), 10–23. https://doi.org/10.26652/cjif.4201912

ICD. (2022). Development Report 2022 Embracing Change. https://www.refinitiv.com/en/resources/special-report/islamic-finance-development-report-2022

Ichsan, R. N., Suparmin, S., Yusuf, M., Ismal, R., & Sitompul, S. (2021). Determinant of Sharia Bank’s Financial Performance during the Covid-19 Pandemic. Budapest International Research and Critics Institute (BIRCI-Journal): Humanities and Social Sciences, 4(1), 298–309. https://doi.org/10.33258/birci.v4i1.1594

IFSB. (2006). Pengembangan Standar. https://www-ifsb-org.translate.goog/published.php?_x_tr_sl=en&_x_tr_tl=id&_x_tr_hl=id&_x_tr_pto=sc

Iwan Triyuwono. (2006). Akuntansi Syari’ah: Menuju Puncak Kesadaran Ketuhanan Manunggaling Kawulo-Gusti. Akuntansi-Universitas Brawijaya, September, 1–24.

Jati, K. W., Agustina, L., Muliasari, I., & Armeliza, D. (2020). Islamic social reporting disclosure as a form of social responsibility of Islamic banks in Indonesia. Banks and Bank Systems, 15(2), 47–55. https://doi.org/10.21511/bbs.15(2).2020.05

Jimoh, A. T., & Attah, J. A. (2021). Financial Performance of Islamic Banking in Nigeria: a Camel Analysis of Jaiz Bank Plc. International Journal of Shari’ah and Corporate Governance Research, 4(1), 1–15. https://doi.org/10.46281/ijscgr.v4i1.1625

John Dowling. (1975). Organizational Legitimacy: Social Values and Organizational Behavior. PASIFIC SOCIOLOGICAL REVIEW, 18(1), 122–136. https://doi.org/10.2307/1388226

Khan, I., Zahid, S. N., & Akhtar, T. (2018). Shari’ah Governance and Islamic Banks Performance: Evidence from South Asia. South Asian Journal of Management Sciences, 12(2), 173–187. https://doi.org/10.21621/sajms.2018122.04

Khanifah, K., Hardiningsih, P., Darmaryantiko, A., Iryantik, I., & Udin, U. (2020). The effect of corporate governance disclosure on banking performance: Empirical evidence from Iran, Saudi Arabia and Malaysia. Journal of Asian Finance, Economics and Business, 7(3), 41–51. https://doi.org/10.13106/jafeb.2020.vol7.no3.41

Mahmud, A., & Rahman, H. (2020). Impact of CAMELIndexes onthe Profitability of Banks in Bangladesh : Islamic Banks Vs Conventional Banks. IOSR Journal of Economics and Finance, 11(5), 6–13. https://doi.org/10.9790/5933-1105060613

Majeed, M. T., & Zainab, A. (2021). A comparative analysis of financial performance of Islamic banks vis-à-vis conventional banks: evidence from Pakistan. ISRA International Journal of Islamic Finance, 13(3), 331–346. https://doi.org/10.1108/IJIF-08-2018-0093

Mubarok, S. M. (2020). The determinants of Islamic social reporting disclosure and its impact on the profitability of sharia banks. Journal of Islamic Economics, Management, and Business (JIEMB), 1(1), 63–98. https://doi.org/10.21580/jiemb.2019.1.1.3742

Mukhibad, H., & Fitri, A. (2020). Determinant of Islamic Social Reporting (ISR) Disclosure. KnE Social Sciences, 2020, 478–489. https://doi.org/10.18502/kss.v4i6.6620

Mustika, S. A., Ekonomi, F., & Bisnis, D. A. N. (2022). GCG dan Kinerja Keuangan Terhadap Pengungkapan Islamic Social Reporting (ISR) Dengan Non Performing Financing (NPF) Sebagai Variabel Intervening Pada Bank Umum Syariah Di Indonesia.

Quoc Trung, N. K. (2021). Determinants of bank performance in Vietnamese commercial banks: an application of the camels model. Cogent Business and Management, 8(1). https://doi.org/10.1080/23311975.2021.1979443

richard oliver ( dalam Zeithml., dkk 2018 ). (2021). Faktor-faktor yang mempengaruhi pengungkapan corporate social responsibility. Diponegoro Journal of Accounting. Angewandte Chemie International Edition, 6(11), 951–952., 1(September), 2013–2015.

Rismayati, Handajani, L., & Lenap, I. P. (2022). Determinan Pengungkapan Islamic Social Reporting Pada Bank Umum Syariah Di Indonesia. Jurnal Riset Mahasiswa Akuntansi, 2(2), 347–361. https://doi.org/10.29303/risma.v2i2.232

Riyani, D., & Uswati Dewi, N. H. (2018). The effect of corporate governance, leverage, and liquidity on islamic social reporting (ISR) disclosure in islamic commercial banks in Indonesia. The Indonesian Accounting Review, 8(2), 121. https://doi.org/10.14414/tiar.v8i2.1628

Rosyidah, S. D., & Nafif, F. (2022). Jurnal Rekognisi Ekonomi Islam. 1(1), 103–119.

Saidani, R., Taktak, N. B., & Hussainey, K. (2021). The Determinants of Investment Account Holders ’ Disclosure in Islamic Banks : International Evidence. Journal of Risk and Financial Management.

Sakanko, M. A. (2020). Indonesian Journal of Islamic Economics Research. Indonesian Journal of Islamic Economics Research, 2(2), 70–84. https://www.academia.edu/download/70097852/1647.pdf

Sari, M. S., & Helmayunita, N. (2019). Pengaruh Good Corporate Governance Terhadap Pengungkapan Islamic Social Reporting. Jurnal Eksplorasi Akuntansi, 1(2), 751–768. https://doi.org/10.24036/jea.v1i2.108

So, I. G., Haron, H., Gui, A., Princes, E., & Sari, S. A. (2021). Sustainability reporting disclosure in islamic corporates: Do human governance, corporate governance, and it usage matter? Sustainability (Switzerland), 13(23). https://doi.org/10.3390/su132313023

Stephen A. Ross. (1977). The Determination of Financial Structure: The Incentive-Signalling Approach. JSTOR, 8(1), 23–40. https://doi.org/10.2307/3003485

Umar, A. U. A. Al, & Haryono, S. H. (2022). Kinerja Keuangan Bank Syariah: Perbandingan Studi dari Indonesia, Malaysia, Arab Saudi dan United Emirates Arab. Owner, 6(2), 1830–1840. https://doi.org/10.33395/owner.v6i2.822

Wardani, E. P., & Nurhayati, P. (2021). the Effects of Islamic Social Reporting in Rgec Relationships on Company’S Value. International Journal of Economics …, 2021(4), 351–363. http://www.jurnal.stie-aas.ac.id/index.php/IJEBAR/article/view/3846%0Ahttp://www.jurnal.stie-aas.ac.id/index.php/IJEBAR/article/download/3846/1756

Zedan, K. (2022). Comparative Analysis of Financial Performance of Islamic vs. Conventional Banks Using CAMEL Model: Evidence from Palestine. International Journal of Economics, Finance and Management Sciences, 10(3), 114. https://doi.org/10.11648/j.ijefm.20221003.14

Article Metrics

Abstract view(s): 824 time(s)
PDF: 381 time(s)

Refbacks

  • There are currently no refbacks.