The role of the Sharia Supervisory Board and corporate governance mechanisms in enhancing Islamic performance – evidence from Indonesia (original) (raw)
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This study aims to find empirical evidence of the Islamic corporate governance mechanism influence the institutional ownership, commissioner board proportion, a board of independent commissioners, the sharia supervisory board proportion, and the audit committee on financial performance. The population of this study is Sharia Commercial Bank in Indonesia year 2013-2017. The population is 13 Sharia Commercial Banks. The sampling technique in this study used a purposive sampling technique. This study obtained 9 banks. The data used is secondary data and data analysis methods using multiple regression analysis. The result of this study concludes that the institutional ownership, the size of board commissioners, independent commissioner board, the size of the sharia supervisory board, and the audit committee do not affect financial performance.
The International Journal of Accounting and Business Society, 2021
Purpose — The aims of this research are to examine and analyze the extent of the role of the sharia supervisory board (SSB) in moderating the effect of good corporate governance on the financial performance of Islamic banks in Indonesia. Design/methodology/approach — The population in this research is 14 (fourteen) Islamic banks in Indonesia and the sample used in this research is 9 (nine) Islamic banks that have published financial reports, good corporate governance reports, and annual reports for the period 2010 - 2019. This research data processed were processed using reviews-10. Findings — The results of this research stated that good corporate governance has a significant effect on the financial performance of Islamic banks. The sharia supervisory board (SSB) moderates the effect of good corporate governance on the financial performance of Islamic banks in Indonesia. Practical Implications — The chow test stated chosen model as fixed effects, then the Housman test stated chosen...
The Journal of Social Sciences Research, 2019
The aim of this research is to assess the effect of financial performance to Maqasid Shariah performance with shariah governance as a moderating variable. Financial performance can be measured based on three criteria: firm size (FS), return on asset (ROA) and asset structure, while Maqasid Shariah performance is measured by zakat, infaq, shadaqoh and awqaf (ZISWAF) and qordhul hasan (QH). Shariah governance (SG) is measured by the proportion of independent board of commissioners’ members, board size, audit committee, and shariah supervisory board. The data in this study are the secondary data from Islamic Banking Financial Report (IBFR) of 2012-2016. This research employed a quantitative approach with panel data regression using E-views 9.0 software. The method for the data analysis used factor analysis. The results show that the effects of FS and ROA on Maqasid Shariah performance are significant, and the implementation of shariah governance is generally proven to play a significan...
The Quality of Corporate Governance and Its Effect on Sharia Bank Financial Performance in Indonesia
Proceedings of the International Conference on Management, Accounting, and Economy (ICMAE 2020), 2020
The research examines factors that impact financial performance of Islamic Banks. It focuses on the banks listed at Bank Indonesia (BI) and the Financial Services Authority of Indonesia (OJK). The independent variables examined include the efficiency of the Board of Directors, Audit Committee, and Sharia Supervisory Board (SSB), as well as the size, age and equity of the bank. The dependent variable includes the Islamic Bank's Financial Performance, which is determined using Return on Equity (ROE). Also, the study uses samples of 11 Islamic banks registered at BI and OJK from 2013 to 2017. They were selected using purposive sampling with specific criteria for sample withdrawal and panel data used in processes. The results showed that the Board of Director Effectiveness and Leverage had a significant positive effect on ROE. However, the Audit Committee Effectiveness, Shariah Supervisory Board Effectiveness, Bank Size, Age Bank did not affect ROE. Islamic banks need to pay attention to the factors that influence financial performance, especially the effectiveness of the Board of Directors. This is because their decisions directly contribute to the bank's performance. For investors, they can see the profits and losses the companies make from year to year through financial statements. They might also determine the quality of corporate governance from the annual reports.
2019
Islamic and conventional banks have real operational differences, so it would be better to measure the performance of these two kinds of banks with different tools. One alternative performance measure is Maqasid Syaria h . The research has been conducted to prove whether the Corporate Governance, Sharia Supervisory Boards (SSB), and Corporate Ethics have contributed to the achievement of Maqasid Syaria h . The research sample is commercial Islamic banks in Indonesia with an observation period from 2009-2017. The data processing uses Equation Model Structure. The result studies are Maqasid Syariah have not yet become a matter of concern for Islamic banks in Indonesia. This fact is proven by the lack of any role for the corporate governance and SSB in ensuring that Maqasid Shariah are met. Corporate Governance have a positive influence on profitability. Islamic banking makes a positive contribution to Corporate Ethics, and has a positive effect on profitability and Maqasid Syariah .
The objective of the study was to know empirically the influence of implementing the Islamic Corporate Governance (ICG) toward Islamic performance of Islamic banks. The Islamic performance of Islamic banks was measured by Islamic finance ratios such as; profit sharing ratio, Islamic income ratio and zakah ratio. The implementation of ICG could be seen from the roles of Syari'ah Supervisory Board (SSB) as the advisory council and shari'ah supervisor, and the shari'ah compliance of banking products and services. The population of the study were Islamic banks in Indonesia either Islamic Commercial Banks or Islamic Business Unit of Conventional Banks. The data were collected by documentation method. Then, the data were analyzed by linear regression.
Journal of Accounting and Investment, 2021
Research aims: This study aims to analyze the role of Islamic corporate governance mechanisms on the performance of Islamic banks. Besides, it also analyzes the effect of risk profiles, especially those that are directly related to bank financing, on the performance of Islamic Banks.Design/Methodology/Approach: Sharia banks that become the objects are Sharia Commercial Banks (SCB) and Sharia Business Units of Conventional Banks (SBU). This study uses data from 20 sharia banks (11 SCB and 9 SBU). The analytical tool used in this study is panel data regression.Research findings: The results show that the meeting frequency of the Board of Commissioners, Sharia Supervisory Board (SSB), Financing to Deposits Ratio (FDR), and bank size have a significant positive effect on the performance of Islamic banks. Non-Performing Financing (NPF) has a significant negative effect on the performance of Islamic banks.Theoretical contribution/Originality: This study utilized Stakeholders theory, Maqos...
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This study aims to determine the influence of the Sharia Supervisory Board and the Board of Commissioners on the Financial Performance of Islamic Banks in Indonesia. This study used secondary data from 12 banks.The sampling technique used is the purposive sampling technique. The method of data analysis used is multiple linear regression.The results partially show that the sharia supervisory board and board of commissioners positively and significantly influence the financial performance of Islamic banks in Indonesia. Simultaneously,the board of commissioners and the sharia supervisory board positively and significantly influence the financial performance of Islamic bank.
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This study aims to examine the effect of Sharia Compliance and Islamic Corporate Governace on Financial Performance in Islamic Commercial Banks. The population in this study were all Sharia Commercial Banks (BUS) registered at Bank Indonesia in the period 2013 to 2017. The samples were selected using the purposive sampling method. The total sample used in this study amounted to 8 Islamic Commercial Banks with a 5year research period. The analytical method used in this study is multiple regression that is processed using SPSS version 20. The results of this study indicate that the Sharia Compliance variable has a significant negative effect on Financial Performance in Islamic commercial banks and the Islamic Corporate Governance variable has a significant negative effect on Financial Performance at sharia commercial bank. While simultaneously, Sharia Compliance and Islamic Corporate Governance have a significant positive effect on Financial Performance at Islamic commercial banks.