An analysis on financial and social performance of Islamic banks in Indonesia (original) (raw)
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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.
Indonesian Journal of Economics, Social, and Humanities
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 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.
Accounting Analysis Journal, 2020
This study aims to examine the effect of Islamic Corporate Governance (ICG) that consist of Sharia Supervisory Board (SSB) which is measured using education level, ratio of independent commissioners, and board of director meetings on maqashid sharia performance. The population in this study was Islamic Bank listed on the Financial Services Authority (FSA) in 2013-2018 as many as 11 Islamic Banks. The sampling technique used in this study was purposive sampling method and obtained as many as 54 units of analysis. Data collection used documentation technique. The analytical method used in this study was panel data regressions using Eviews 9. The results of the study indicate that Sharia Supervisory Board (SSB) which is measured using education level, ratio of independent commissioners, and board of director meeting of board do not have effect on maqashid sharia performance. The conclusion of this research is that maqashid sharia performance of Indonesian Islamic Bank just 34.138 %, th...
Maqdis: Jurnal Kajian Ekonomi Islam
This study aims to find out how much influence the financial performance, sharia supervisory board, and corporate governance on sharia banking responsibilities in Indonesia. The population in this study is all Sharia banks in Indonesia from 2015 to 2019. In contrast, the samples in this study were determined by purposive sampling, so 14 samples were obtained. The type of data used is secondary data obtained from www.bi.go.id. Based on the results of financial performance research, it does not influence social responsibility, the sharia supervisory board does not affect social responsibility, and partially there is a positive and significant influence between corporate governance on Islamic social responsibility in sharia banking in the period 2015-2019.
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...
Islamicity Financial Performance Index in Indonesian Islamic Banks
Shirkah: Journal of Economics and Business, 2017
This study aims to critically analyze the effect of islamic social reporting, intellectual capital and the sharia supervisory board on islamicity financial performance index of Islamic Banks in Indonesia during 2011-2015. The samples of this study are ten islamic commercial banks that were initially selected by using purposive sampling method. Islamicity financial performance index was used as a measure of financial performance of Islamic banks which are consist of profit sharing ratio, zakat performance ratio, equitable distribution ratio, and islamic income versus non islamic income ratio. The analysis technique performed in this study is partial least squares. The results of this research revealed that islamic social reporting, intellectual capital and sharia supervisory board have positive and significant effect on islamicity financial performance index of Islamic banks.Keywords: islamic social reporting, intellectual capital, sharia supervisory board, islamicity financial...
2021
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.
2023
This research aims to measure the quality of Good Corporate Governance (GCG) in Islamic Banking and examine its effect on financial performance. The independent variables examined include GCG Index, Board of Commissioner (BOC), Audit Committee (AC), Sharia Supervisory Board (SSB), Gender Diversity of BOC and SSB. The dependent variable includes financial performance determined by Return on Assets (ROA). This research uses samples of 11 Islamic Commercial Banks period of 2015-2019. They were selected using judgement sampling method. The data analysis method used panel data regression analysis with Fixed Effect estimation model. The result revealed that the GCG quality of Islamic Commercial Banks in Indonesia adheres to 90% of the indicator used in the GCG Index. Despite that, the GCG Index found no significant effect on financial performance. Moreover, the Good Corporate Governance implication in Board of Commissioner, Audit Committee, Sharia Supervisory Board and Gender Diversity also found no significant effect on Islamic banking's financial performance.
Quality of Sharia Governance Structure on Social Performance in Indonesian Islamic Banking
JHSS (JOURNAL OF HUMANITIES AND SOCIAL STUDIES)
This research aimed to examine empirically the effect of the performance of Islamic Bank on sharia governance in Indonesia. The social performance of the Islamic Bank was measured by qordhul hasan and micro finance, and sharia governance (SG) was measured by the proportion of the independent board of commissioners, board size, audit committee and sharia supervisory board. The data in this study were secondary data from Islamic Banking Financial Report (IBFR) of 2012-2016. This research applied quantitative approach with the panels of data regression using E-views 9.0 software. Data analysis was conducted by using factor analysis. The test result showed that the direct effect of SG on performance was 0.323 significant because it had a value of t count of 11.96 or a value of probability of (0,000) < alpha 5%. The positive coefficient showed that SG was able to improve performance while the highest loading values that reflected SG (TKS) was X3 (number of KA members) of 0.934, and X4...