scholarly journals Determinants of Islamic Social Responsibility Disclosure the Case of Islamic Bank: Cross Country Analysis

2020 ◽  
Vol 4 (1) ◽  
pp. 59
Author(s):  
Agus Maulana ◽  
Evony Silvino Violita
Keyword(s):  
Corporate Governance ◽  
Social Responsibility ◽  
Political Context ◽  
Islamic Banks ◽  
Main Determinant ◽  
Islamic Bank ◽  
Content Analysis Method ◽  
The Status ◽  
Islamic Financial Institutions ◽  
Country Analysis

Introduction to The Problem: The rapid growth of Islamic financial institutions around the world attracts a lot of attention, but its growing is not supported by adequate accountability. Several evidence show that accountability of Islamic banks is still very low. The lack of accountability may causes low public trust, so it is important to study the determinant of Islamic Social Responsibility Disclosure by Islamic Bank.Objective Study: This study intends to examine the determinants of Islamic Social Responsibility disclosure (ISR). So practitioners and academics can get a clear view of Islamic Bank's accountability through ISR disclosure.Methodology: This paper applies some theories such as stakeholder theories, agency theory, and legitimacy theory to developed hypotheses linking ISR disclosure and its determinants (internationality, Islamic Corporate Governance, and Socio-Political Context). This paper uses the content analysis method to assess the ISR disclosure of Islamic banks from 13 countries spanning from 2014 to 2016. The ISR index consists of 72 items developed based on AAOIFI. Finally, OLS Regression Analysis is used to test the hypotheses.Findings: The paper find that the level of ISR disclosure is still very low (44%). From the internationality aspect, we found that the proportion of foreign ownership and the status of the multinational corporation influenced the level of ISR disclosure, but we did not find evidence that the CEO's overseas experience affected the level of disclosure. This paper also confirm that Islamic Corporate Governance and Socio-Political context are the main determinant of ISR disclosure by Islamic Bank.

scholarly journals CSR Disclosure, Corporate Governance and Firm Value: a study on GCC Islamic Banks

2020 ◽  
Vol 28 (4) ◽  
pp. 607-638
Author(s):  
Mohd Shukor Harun ◽  
Khaled Hussainey ◽  
Khairul Ayuni Mohd Kharuddin ◽  
Omar Al Farooque
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Institutions ◽  
Firm Value ◽  
Islamic Banks ◽  
Content Type ◽  
Gcc Countries ◽  
Islamic Financial Institutions ◽  
Corporate Social

Purpose This study aims to explore the corporate social responsibility disclosure (CSRD) practices of the Islamic banks in the Gulf Cooperation Council (GCC) countries during the period 2010-2014 and examines the determinants of CSRD and its effects on firm value. Design/methodology/approach Based on the Accounting and Auditing Organization for Islamic Financial Institutions Governance Standard No. 7 guidelines and using content analysis, the paper develops a comprehensive CSRD index for GCC Islamic banks. The study applies ordinary least squares regression analysis for hypothesis testing and for finding determinants of respective dependent variables. Findings The results show a very low level of CSRD among the sample Islamic banks in GCC countries. When using corporate governance characteristics to examine the determinants of CSRD, this study provides evidence of a significant positive association between board size and CSRD practice in Islamic banks and a significant negative relationship of chief executive officer (CEO) duality with CSRD, as per expectation. For the economic consequences of CSRD, the study documents an inverse performance effect of CSRD while board size, board composition and CEO duality indicate significant positive effects on firm value. Research limitations/implications The relatively small sample size of GCC Islamic banks may limit the application of the findings to other Islamic financial institutions such as Takaful and the Islamic unit trust company. Practical implications The findings of this study initiate the global debate on the need for corporate governance reform in Islamic banks by providing insights on the role played by corporate governance mechanisms in encouraging and enhancing CSRD practices among Islamic banks. The findings also have important implications for investors, managers, regulatory bodies, policymakers and Islamic banks in the GCC countries. Social implications The results of the study do not support the idea that Islamic banks operating on Islamic principles can meet their social responsibilities through promoting corporate social responsibility (CSR) activities and by differentiating themselves from non-Islamic banks. Originality/value This is the first study to examine the determinants of CSRD in GCC Islamic banks using comprehensive CSRD and corporate governance variables and, therefore, adds value to the existing CSR literature in banking.

TINJAUAN HUKUM FIKIH TERHADAP HADIAH TABUNGAN DAN GIRO DARI BANK SYARI'AH

ALQALAM ◽  
2013 ◽  
Vol 30 (1) ◽  
pp. 1
Author(s):  
Muhammad Nadratuzzaman Hosen ◽  
Deden Misbahudin Muayyad
Keyword(s):  
Islamic Law ◽  
Islamic Banks ◽  
Islamic Bank ◽  
Literature Reviews ◽  
The Gift ◽  
The Status ◽  
The Law

This article explains about the Islamic law of gift from Bank to customers related to saving and gyro accounts of Islamic Bank. The Islamic Banks give gift directly  and  indirectly  to  new  ettstomers  and  old  customers  through drawing  (qur'ah) or lottery and non-drawing. There are disputes (ikhtilaf) among Islamic Law  Experts (Fuqaha’) about the status of law when Islamic Banks give the gift. Hanafi and  Syafi'i  Schools  of thought  opined  that  the gift  can  be given  to  the customers as long as there is no agreement between bank and costomers meanwhile the banks still have a debt to consumers, this is permissible. Maliki and Hanbali schools opined that the gift is not permissible during the time of borrowing and lending. Majority Islamic Exsperts allow to give gift after banks have already paid­ back the debt to consumers as long as there is no agreement between bank and cusiomers, but Maliki School do not allow lo give gift at that condition. Also, for giving gift should free from gambling or elements of gambling (muqamarah).  The method of this article is using literature reviews from classical Islamic Law's books and contemporary Islamic law's books related to drawing or lottery and gambling, meanwhile the aims if this mticle are to investigate the law status if gift from bank to new customers and old customers with direct and indirect ways.   Keywords : gift, saving and gyro accounts, disputes, drawing and elements of gambling

Peranan Komisaris dan Direksi Bank Syariah dalam Pengelolaan Dana Zakat dan ISR (Islamic Social Responsibility) di Indonesia

2019 ◽  
Vol 14 (2) ◽  
pp. 95
Author(s):  
Melia Frastuti ◽  
Dimas Pratama Putra ◽  
Erfan Effendi
Keyword(s):  
Social Responsibility ◽  
Commercial Banks ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Islamic Banks ◽  
The Public ◽  
Islamic Bank ◽  
Positive Assessment ◽  
Nature Preservation

Abstract     Almsgiving is one of the pillars supporting the upholding of Islam as the obligation for the adherents to improve horizontal relations between fellow humans and strengthen vertical relations with Allah SWT. The implementation of Islamic Social Responsibility (ISR) of the Islamic Bank gives a positive assessment in sharia agreement, justice and equality, responsibility for work, welfare, guarantee of nature preservation and benevolent assistance that is not profit-oriented.Proper almsgiving management and ISR implementation make Islamic banks trusted by the public in terms of service quality, satisfaction and loyalty of Muzzaki. It reduces bad images, and provides relevant impacts on social welfare and the progress of the era. The data analysis used to test the hypotheses is Multiple Linear Regression analysis. The data is collected by distributing questionnaires to Commissioners and Directors at 14 (fourteen) Islamic Commercial Banks spread throughout Indonesia. The result of this study shows partially prove the role of Islamic bank commissioners in the amsgiving management only, while the importance of the role of directors in Islamic banks in almsgiving management and the implementation of ISR partially. Keywords: Islamic Bank, Commissioners, Directors, Almsgiving and ISR

scholarly journals Analysis of Corporate Governance on Islamic Bank in Indonesia

2019 ◽  
Vol 19 (2) ◽  
Author(s):  
Muhamad Nadratuzzaman Hosen ◽  
Nasimul Falah ◽  
Fitriyani Lathifah
Keyword(s):  
Corporate Governance ◽  
Islamic Law ◽  
Qualitative Approach ◽  
Islamic Banks ◽  
Islamic Bank ◽  
Positive Law ◽  
The Right ◽  
Islamic Values

This research demonstrates conceptual corporate governance (CG) which has relationship with regulations and Islamic teaching. Then, to investigate CG in Islamic Bank in Indonesia and to review law aspects and Islamic values related to rules of corporate CG in Islamic Bank in Indonesia. The study used qualitative approach using study literature and interview to analyze the implementation of corporate governance in Islamic bank in Indonesia. This study found that Islamic Banks which issued the rules of CG were not following philosophy of Islamic principles and not following strongly Islamic law and positive law. Hence, there were several fraud cases on Islamic banks inIndonesia. Islamic corporate governance in Indonesia still not find the implementation like in Malaysia. Rules of CG through regulation for Islamic bank is involving futher researher to examine the right policy. The regulation of corporate governance regulations for Islamic bank still need to be refined and turned into Islamic corporate governance standard in accordance with Islamic principles and national laws which required by Islamic bank.

Corporate governance and compliance with AAOIFI governance standards by Islamic banks

2020 ◽  
Vol 13 (5) ◽  
pp. 891-918
Author(s):  
Yosra Mnif ◽  
Marwa Tahari
Keyword(s):  
Corporate Governance ◽  
Financial Institutions ◽  
Audit Committee ◽  
Annual Reports ◽  
Islamic Banks ◽  
Content Type ◽  
Disclosure Requirements ◽  
Financial Expertise ◽  
Islamic Financial Institutions ◽  
Research Stage

Purpose This study aims to examine the effect of the main corporate governance characteristics on compliance with accounting and auditing organisation for Islamic financial institutions’ (AAOIFI) governance standards’ (GSs) disclosure requirements by Islamic banks (IB) that adopt AAOIFIs’ standards in Bahrain, Qatar, Jordan, Oman, Syria, Sudan, Palestine and Yemen. Design/methodology/approach The sample consists of 486 bank-year observations from 2009 to 2017. Findings The findings reveal that compliance with AAOIFIs’ GSs’ disclosure requirements is positively influenced by the audit committee (AC) independence, AC’s accounting and financial expertise and industry expertise, auditor industry specialisation, IB’s size and IB’s listing status. On the other hand, it is negatively influenced by the ownership concentration. Research limitations/implications This study has only examined compliance with AAOIFI’s GSs’ disclosure requirements and has focussed on one major sector of the Islamic financial institutions (which is IB). Practical implications The findings are useful for various groups of preparers and users of IBs’ annual reports such as academics and researchers, accountants, management of IBs and some organisations. Originality/value While the study of the AAOIFIs’ standards has grown contemporary with considerable contributions from scholars, however, the majority of these studies are descriptive in nature. Indeed, the existing literature that has explored the determinants of compliance with AAOIFI’s standards is in the early research stage. To the best of the knowledge, there is a paucity of empirical research testing this issue.

Linkage between corporate governance and corporate social responsibility in banking sector of Bangladesh

2015 ◽  
Vol 02 (04) ◽  
pp. 1550036 ◽  
Author(s):  
Syed Moudud-Ul-Huq
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Banking Sector ◽  
Islamic Banks ◽  
Return On Equity ◽  
Earnings Per Share ◽  
Conventional Banks ◽  
Corporate Social ◽  
Better Than

This paper has been made to analyze the linkage between corporate governance and corporate social responsibility. From analysis, it is found that Eastern Bank Ltd. (EBL) performs better than other selected banks but not enough in practicing corporate social responsibility. While, conventional banks are more imperative than Islamic banks as all the indicators cover its benchmark apart from return on total assets. It has proved that there is a significant relationship among return on equity, earnings per share, corporate governance and corporate social responsibility but corporate social responsibility has shown little impact on corporate performance.

Ownership structure and financial performance in Islamic banks

2014 ◽  
Vol 7 (2) ◽  
pp. 146-160 ◽  
Author(s):  
Sarra Ben Slama Zouari ◽  
Neila Boulila Taktak
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Empirical Evidence ◽  
Ownership Structure ◽  
Policy Implications ◽  
Bank Performance ◽  
Islamic Banks ◽  
Content Type ◽  
Islamic Bank ◽  
The Impact

Purpose – This study aims to investigate empirically the relationship between ownership structure (concentration and mix) and Islamic bank performance, with a special attention to the identity of the block investor (foreign, family, institutional and state). Design/methodology/approach – Regression analyses are conducted to test the impact of the identity of the first shareholders and the degree of concentration on Islamic bank performance, using a panel data sample of 53 Islamic banks scattered over > 15 countries from 2005 to 2009. Findings – Results suggest that ownership is concentrated at 49 per cent, and for 41 banks from the full sample, the ultimate owner is institutional. State investors come in second place, followed by family ultimate shareholders. Using return on assets and return on equity as performance measures, empirical evidence highlights the absence of correlation between ownership concentration and Islamic bank performance. It also reveals that the combined effort of family and state investors is beneficial to bank performance. Results also indicate that banks with institutional and foreign shareholders do not perform better. Empirical findings suggest that the financial crisis impacts negatively Islamic bank performance. Research limitations/implications – The use of dummy variables to measure the nature of the largest owner represents the main limitation of this study. This is due to the lack of information, as the percentage of the largest capital held referring to owner category was available only for some banks. Practical implications – This research has given a brighter insight into corporate governance and bank performance in selected Islamic banking institutions. Findings provided useful information to bank managers, investors and policy makers. Financial performance can be improved by identifying practices associated with ownership structure. So, it will have policy implications for Islamic banks as to how to improve their performance. Finally, different types of bank ownership have had different concerns about implementing corporate governance practices among Islamic banks. Originality/value – This work is the first of its kind for Islamic banks. It extends previous research by examining whether ownership structure (concentration and mix) affects performance. It also fills the gap in the literature by providing empirical evidence on a large sample involving data from 15 countries. Finally, manual data collection on ownership structure constitutes a large part of the research for this paper.

scholarly journals ANALISIS PERBANDINGAN BANK SYARIAH NON DEVISA DAN BANK SYARIAH DEVISA DITINJAU DARI KINERJA FUNGSI BISNIS DAN FUNGSI SOSIAL DENGAN METODE RGEC DAN SHARIA CONFORMITY INDIACTOR PERIODE 2011 – 20151)

2019 ◽  
Vol 5 (3) ◽  
pp. 247
Author(s):  
Zain Nahdi Baldina ◽  
Achsania Hendratmi
Keyword(s):  
Corporate Governance ◽  
Business Performance ◽  
Social Performance ◽  
Risk Profile ◽  
Annual Reports ◽  
Islamic Banks ◽  
Whitney Test ◽  
Islamic Bank ◽  
Good Corporate Governance ◽  
Test Result

This study aims to compare and see the differences between foreign Islamic bank and non-foreign Islamic bank using method RGEC (Risk Profile, Good Corporate Governance, Earnings, and Capital). This study examines the comparison in business and social performance of four foreign Islamic banks and six non-foreign Islamic banks. The collection of data in this study was done by collecting all the annual reports of banks that has been created as a sample over the period 2011-2015.The test result of the Independent Samples T-test and Mann Whitney Test showed there was no differences in the business performance of foreign Islamic banks exchange with Non-foreign Islamic Bank exchange as seen from the aspect of Risk profile (FDR), GCG, and Earnings (ROA). While there were differences of business and social performance as seen from Earnings (ROE), capital (CAR), and Sharia Conformity Indicator (PSR and ZR) aspects

scholarly journals The Contribution of Islamic Bank in Poverty Alleviation

Al-Ahkam ◽  
2020 ◽  
Vol 30 (1) ◽  
pp. 19
Author(s):  
Lucky Nugroho ◽  
Akhmad Amien Mastur ◽  
Harnovinsah Harnovinsah ◽  
Widya Aryanti
Keyword(s):  
Statistical Data ◽  
Islamic Banks ◽  
Rural And Remote ◽  
Remote Areas ◽  
Islamic Bank ◽  
Rural And Remote Areas ◽  
Islamic Financial Institutions ◽  
Spss Software ◽  
Branch Office ◽  
Poverty Levels

<p class="IABSSS">The existence of Islamic banks as one part of Islamic financial institutions should contribute to improving the economy, one of which is to reduce poverty. Therefore, the purpose of this study is to investigate the effect of financing variables, asset variables, and Islamic bank office variables on poverty levels. The sample used to be Islamic Commercial Banks (BUS) in the 2013-2017 period, with a total of 110 samples. The methodology used is quantitative with multiple regression statistical analysis and statistical data processing using SPSS software version 20. The results of the study note that financing has a negative and significant effect, namely, the higher the financing of Islamic banks, it will reduce poverty. However, the total assets and the number of networks that have a positive and significant effect, namely the increase in total assets and branch networks, it will affect the increasing amount of poverty. That is because the assets of Islamic banks are supported by the majority savings and the not optimal yet of distribution of financing from Islamic banks to the community. Also, the existence of the Islamic branch office tends to be found in provincial capitals and big cities, so that the communities in rural and remote areas are still not reached by Islamic banks.</p>

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