scholarly journals Profit Islamic Bank from Mudharabah and Musharakah Finance with Islamic Social Responsibility Disclosure

2021 ◽  
Vol 10 (3) ◽  
pp. 84-91
Author(s):  
Yusuf Faisal ◽  
Nirdukita Ratnawati ◽  
Egi Gumala Sari
Keyword(s):  
Social Responsibility ◽  
Financial Services ◽  
Commercial Banks ◽  
Annual Reports ◽  
Islamic Banks ◽  
Test Results ◽  
Islamic Bank ◽  
Net Profit ◽  
Negative Effect ◽  
Rate Of Profit

This research was conducted to determine the effect of mudharabah and musharakah financing on net profit of Islamic commercial banks in Indonesia. This study uses the annual financial statements of Islamic commercial banks obtained from the Financial Services Authority and annual reports on the website of Islamic commercial banks for the period 2010-2019. The test results found that mudharabah financing had a significant effect on the net profit of Islamic banks, this also strengthened Islamic social responsibility of Islamic commercial banks. But unlike mudharabah financing, musharakah financing actually has a negative effect on the net profit of Islamic commercial banks, which means that the higher the Islamic bank distributes musharakah financing, the rate of profit will decrease which results in the weakening of Islamic social responsibility disclosure. It is recommended that Islamic banks exercise greater caution when selecting consumers for mudharabah financing, as this type of financing carries a higher risk but also a higher profit share if the financing is successful. This research has a limitation in that it focuses exclusively on Islamic commercial banks in Indonesia, although additional research might be conducted by sampling Sharia Business Unit and Sharia Rural Bank.

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 CSR Contribution to Socio-Economic Development: Evidence from Indonesian Islamic Banks

2020 ◽  
Vol 3 (1) ◽  
pp. 13
Author(s):  
Aishath Muneeza ◽  
Aminudin Ma'ruf ◽  
Shahbaz Alam
Keyword(s):  
Economic Development ◽  
Social Responsibility ◽  
Commercial Banks ◽  
Exploratory Study ◽  
Annual Reports ◽  
Islamic Finance ◽  
Environmental Responsibility ◽  
Islamic Banks ◽  
Socio Economic Development ◽  
Corporate Social

Islamic banks play a significant role in social and environmental responsibility. It is known that Islamic finance is not merely profit-oriented but also looking at the prosperity of the society, as an ethical financial system Islamic finance give a massive contribution towards social responsibility. This exploratory study examines the relations between corporate social responsibility (CSR) practices of Indonesian Islamic banks and socio-economic development. The evidence presented is based on the published annual reports of 13 Islamic commercial banks in 2017. The findings of this research suggests that CSR is a priority of Indonesian Islamic banks and has correlation to the socio-economic development. Furthermore, the findings suggest that the robust guiding principles on CSR need to be developed and it has potential of Islamic banks credibility and profitability.

scholarly journals Analisis Profitabilitas Dari Pembiayaan Mudharabah, Musyarakah, Dan Murabahah Pada Bank Umum Syariah Di Indonesia Periode 2005-2010

2016 ◽  
Vol 12 (1) ◽  
pp. 1
Author(s):  
Aditya Satriawan ◽  
Zainul Arifin
Keyword(s):  
Financial Services ◽  
Profit Margin ◽  
Islamic Banks ◽  
Banking Services ◽  
Return On Equity ◽  
The Public ◽  
Islamic Bank ◽  
Operating Profit ◽  
Net Profit ◽  
Simple Regression Analysis

<p>Bank is a business entity that collects funds from the public in the form of savings and channel them to the public in the form of loans or other forms in order to improve the living standards of people. Islamic banking services related to financial services offered by Islamic banks in the packed products that exist in the Islamic bank, one that characterizes the Islamic bank is based financing for the results of mudaraba and musharaka there is also financing by way of sale and purchase or called murabaha. This study aims to determine the effect mudharabah, musyaraka and murabahah to the profitability of Islamic banks in Indonesia as well as which of the three financing is a significant influence on the profitability of Islamic banks in Indonesia. This research uses the object of Islamic banks namely Bank Syariah Mandiri, Bank Mega Syariah, Bank<br />Muamalat Indonesia and in the period 2005-2010 the realization of financing (murabahah, musyarakah and mudarabah) using a quantitative method with simple regression analysis that will get the parameters of the effect of changing a variable against other variables, which will then get a conclusion. The study reveals that Return on Equity (ROE), Operating Profit Margin (OPM), and Net Profit Margin (NPM) are significantly affected by mudharabah; and Gross Profit Margin (GPM) is significantly affected by the Musharaka.<br />Keywords: Mudharabah, Musyarakah, Murabahah, ROE, OPM, NPM, GPM</p>

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

2019 ◽  
Vol 14 (2) ◽  
pp. 95-108
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

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.

scholarly journals Corporate Social Responsibility (CSR) and Financial Performance in Islamic Commercial Banks and Islamic Business Units in Indonesia

2019 ◽  
Vol 2 (1) ◽  
pp. 1-22
Author(s):  
Cantika Aurelia Ritantri ◽  
Wahyu Trinarningsih
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Commercial Banks ◽  
Control Variable ◽  
Annual Reports ◽  
Business Units ◽  
Negative Effect ◽  
Csr Disclosure ◽  
Corporate Social

This study aims to examine the relationship between corporate social responsibility (CSR) and financial performance in islamic commercial banks and islamic business units in Indonesia over period 2011-2016 . CSR disclosure in this study uses the Islamic Social Reporting (ISR) index and financial performance measures using Return on Asset (ROA) and Return on Equity (ROE), with source of the data coming from the annual reports of each bank. This study uses a control variable such as the number of directors, number of Sharia Supervisory Boards (SSB), bank size, and bank age. This research aims to find out whether corporate social responsibility (CSR) affects financial performance or financial performance that affects corporate social responsibility (CSR). The result of this study show that financial performance affects corporate social responsibility. ROA has a positive effect on corporate social responsibility (CSR) and ROE has a negative effect on corporate social responsibility (CSR). The limit number of the sample become a lack in this study.

scholarly journals The effect of profitability, size and Shariah supervisory board of an Indonesian Islamic bank on the Islamic social reporting disclosure

2021 ◽  
Vol 16 (3) ◽  
pp. 84-92
Author(s):  
Fachrurrozie ◽  
Ahmad Nurkhin ◽  
Agus Wahyudin ◽  
Al Mamnukhin Kholid ◽  
Ika Agustina
Keyword(s):  
Commercial Banks ◽  
Supervisory Board ◽  
Social Reporting ◽  
Annual Reports ◽  
Islamic Banks ◽  
Islamic Bank ◽  
High Level ◽  
The Relationship ◽  
Positive Effect

This paper analyzes the effect of profitability and size of Indonesian Islamic banks on the level of Islamic Social Reporting (ISR) disclosure. This study also investigates the role played by the Sharia Supervisory Board (SSB) in the effect of profitability and size of an Islamic bank on ISR disclosure. The presence of SSB is very important in the operations of Islamic banks. SSB should be involved in important company decisions, including the ISR disclosure. The study covers all 14 Indonesian Islamic commercial banks as a population; the analysis will be conducted based on annual reports of the banks’ divisions for the period 2014–2018. A documentation technique was used to collect the data. Moderated Regression Analysis (MRA) was used for data analysis. The results show that the adjusted R-squared coefficient of the equation is 0.341. R-squared contributions of ROA, ROE, size, and SSB are –0.093, 0.010, 0.983, and –0.081. Other results show that profitability (ROA) and size (total assets) significantly affect the level of ISR disclosure among Indonesian Islamic banks. However, the results were indifferent regarding the role of SSB. There is no significant effect of SSB on ISR disclosure. SSB was important for moderating the relationship between profitability (ROA and ROE) and bank size and ISR disclosure level. SSB’s involvement in the decision making of Islamic banks will have a positive effect on the activities of Islamic banks. Islamic banks will tend to have a high level of ISR. Further researchers can develop SSB measurements for more accurate results.

scholarly journals Pengaruh Komisaris Independen, Dewan Pengawas Syariah, Kepemilikan Institusional, dan Profitabilitas Terhadap Tingkat Pengungkapan Tanggung-jawab Sosial pada Bank Syariah di Indonesia

2018 ◽  
Vol 9 (1) ◽  
Author(s):  
Rena Mustari Mokoginta ◽  
Herman Karamoy ◽  
Linda Lambey
Keyword(s):  
Social Responsibility ◽  
Commercial Bank ◽  
Financial Services ◽  
Commercial Banks ◽  
Supervisory Board ◽  
Secondary Data ◽  
Institutional Ownership ◽  
Annual Reports ◽  
Analysis Method ◽  
Supervisory Boards

Abstract. This purpose of this study is aimed to analyze the influence of independent commissioners on the level of disclosure of social responsibility, the influence of the Shariah Supervisory Boards (SSB) on the level of social responsibility disclosure, the influence of institusional ownership on the level of social responsibility disclosure and profitability influence on the level of social responsibility disclosure on shariah bank in Indonesia. The number of observations in this study is 68 years of sharia bank of 13 sharia commercial banks registered in Sharia Banking Statistics of the Financial Services Authority period 2008-2016. This study uses secondary data which are in the form of annual reports obtained through the official website of each sharia commercial bank. Hypothesis testing is conducted by using multiple linier regression analysis method with SPSS version 21. The result showed that hypothesis 1 that is independent commissioner does not have an effect on social responsibility disclosure level, hypothesis 2 that is sharia supervisory board influences to disclosure level of responsibility, hypothesis 3 that is institutional ownership does not affect the level of social responsibility disclosure and hypothesis 4 that is profitability does not affect the level of social responsibility disclosure.Keywords: disclosure, social responsibility, independent commissioner, sharia supervisory board, institutional ownership, and profitabilityAbstrak. Tujuan dalam penelitian ini adalah untuk menganalisis pengaruh komisaris independen terhadap tingkat pengungkapan tanggung jawab sosial, pengaruh Dewan Pengawas Syariah (DPS) terhadap tingkat pengungkapan tanggung jawab sosial, pengaruh kepemilikan institusional terhadap tingkat pengungkapan tanggung jawab sosial dan pengaruh profitabilitas terhadap tingkat pengungkapan tanggung jawab sosial pada bank syariah di Indonesia. Jumlah observasi dalam penelitian ini adalah  68 tahun bank syariah dari 13 bank umum syariah yang terdaftar di Statistik Perbankan Syariah Otoritas Jasa Keuangan periode 2008-2016. Penelitian ini menggunakan data sekunder yaitu berupa laporan tahunan yang diperoleh melalui website resmi tiap-tiap bank umum syariah. Pengujian hipotesis dilakukan dengan menggunakan metode analisis regresi linier berganda dengan bantuan SPSS versi 21. Hasil penelitian menunjukkan bahwa hipotesis 1 yaitu komisaris independen tidak berpengaruh terhadap tingkat pengungkapan tanggung jawab sosial, hipotesis 2 yaitu dewan pengawas syariah berpengaruh terhadap tingkat pengungkapan tanggung jawab, hipotesis 3 yaitu kepemilikan institusional tidak berpengaruh terhadap tingkat pengungkapan tanggung jawab sosial dan hipotesis 4 yaitu profitabilitas tidak berpengaruh terhadap tingkat pengungkapan tanggung jawab sosial.Kata Kunci: Pengungkapan, tanggung jawab sosial, komisaris independen, dewan pengawas syariah (DPS), kepemilikan institusional, dan profitabilitas

Comparative compliance status of AAOIFI and IFSB standards

2018 ◽  
Vol 9 (4) ◽  
pp. 607-628 ◽  
Author(s):  
Md. Hafij Ullah ◽  
Ruma Khanam ◽  
Tabassum Tasnim
Keyword(s):  
Financial Reporting ◽  
Financial Services ◽  
Ordinary Least Squares ◽  
Annual Reports ◽  
Reporting Standards ◽  
Islamic Banks ◽  
Content Type ◽  
Islamic Bank ◽  
Operational Risks ◽  
Islamic Financial Institutions

Purpose This paper aims to examine the compliance status of Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) Financial Accounting Standards-1 and Islamic Financial Services Board (IFSB) Standard-4 by Islami Bank Bangladesh Limited (IBBL), recognizing the regulatory influence for complying with AAOIFI and IFSB standards and identifying the factors influencing the compliance with these standards. Design/methodology/approach The present study used content analysis approach for investigating the compliance status. The study considered IBBL as the only sample because it is the only Islamic bank in Bangladesh which is the member of both AAOIFI and IFSB. Hence, this paper investigated the compliance status of IBBL as a member of AAOIFI and IFSB. The study examined the annual reports of 2008-2012 as these were the latest and contemporary reports in 2013 when the study was conducted. SPSS software version 22.0 was used to analyze the data. A total of 203 items under 13 categories of AAOIFI standard and 133 items under 17 categories of IFSB standard were considered. Ordinary least squares was run to test the hypotheses of the study. Findings The study found that IBBL on an average complied 46.31 per cent of AAOIFI and 52.50 per cent of IFSB standards during the period, and importantly, IBBL did not comply some of the categories of required disclosures. The study also observed that size, as measured by total asset and number of branches, has a significant influence on compliance with IFSB standard, but not AAOIFI. The findings of the study depicted that IBBL did not reasonably recognize the importance of complying with AAOIFI and IFSB standards. Poor compliance or non-compliance with AAOIFI and IFSB accounting and reporting standards by IBBL exposed that the bank is not efficient in managing Shari`ah compliance risks, operational risks and transparent financial reporting. Therefore, recognition of the Shari`ah standards by the respective IFIs and a “regulatory push” is vital for improving the level of compliance with these standards. Research limitations/implications The study considered IBBL as the only sample of the study because it is the only Islamic bank in Bangladesh which holds the membership of both AAOIFI and IFSB. The fiscal years 2008-2012 only were selected to evaluate the compliance status of the AAOIFI and IFSB standards in preparation and presentation of the financial statements of IBBL for comparative analysis because IFSB standard for accounting and disclosure was formulated in 2007; hence, the study could not evaluate the compliance status before 2008. Practical implications The study will help IBBL in identifying their limitations in complying AAOIFI and IFSB standards and also the regulators in designing the accounting and reporting frameworks in regulating Islamic banks in Bangladesh. The study would help IBBL in identifying the reasons for non-compliance, how improvement in compliance level may help the bank in mitigating Shari`ah compliance and operational risk and how new legal and institutional framework may improve the level of compliance with those standards. Social implications The study observed that the AAOIFI and IFSB standards were set for increasing the level of Shari`ah compliance, but the compliance status showed that different classes of accounting and reporting were ignored from compliance by IBBL. This study will benefit the stakeholders in choosing a Shari`ah-compliant bank. Originality/value This is a unique study which considered both AAOIFI and IFSB accounting and reporting standards in evaluating the reporting compliance status of an Islamic bank and identified the influence of reporting compliance on managing Shari`ah compliance risks, operational risks and transparency. This study expects to instigate the Islamic banks in complying accounting and reporting standards for being Shari`ah-compliant.

Corporate Social Responsibility Practices in Indian Petroleum Companies: A Case Study of Selected PSUs

Think India ◽  
2018 ◽  
Vol 21 (3) ◽  
pp. 13-18
Author(s):  
Abhijit Ranjan Das ◽  
Subhadeep Mukherjee
Keyword(s):  
Corporate Social Responsibility ◽  
Public Sector ◽  
Social Responsibility ◽  
Business Environment ◽  
Annual Reports ◽  
Net Worth ◽  
Net Profit ◽  
Petroleum Companies ◽  
Corporate Social

Corporate Social Responsibility (CSR) is not a very new concept, it is an old concept. Earlier, in India it was optional to the company that they may contribute voluntarily towards CSR but after the Companies Act 2013, it was formally introduced in the business environment and was made mandatory for those companies whose net worth and profit cross a threshold limit. They should contribute 2% of the average net profit of just preceding three years profit. This paper primarily focuses on CSR practices of some selected public sector petroleum companies in India. The study has been conducted based on the Annual Reports of seven selected public sector companies. Five years of data on CSR spending from 2009–10 to 2014–15 were examined. Moreover, the pattern of expenses was also examined. Since petroleum companies are giants of the India economy and contribute significantly towards the Gross Domestic Product (GDP) of our country. Thus it is necessary to look into how these companies are contributing towards CSR. An attempt has been made to examine the early impact of Section 135 of the Companies Act.

Pengaruh Islamic Social Reporting terhadap Profitabilitas (Return on Asset dan Return on Equity) Pada Bank Umum Syariah Di Indonesia

2019 ◽  
Vol 4 (2) ◽  
pp. 1
Author(s):  
Ana Santika
Keyword(s):  
Corporate Governance ◽  
Commercial Banks ◽  
Sampling Technique ◽  
Social Reporting ◽  
Annual Reports ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Collection Method ◽  
Return On Equity ◽  
Social Environmental

The act of accuracy and prudence is very important in the company because is the factor that determines the sustainability of companies such as banking. This study aims to analyze the effect of Shariah Complaints towards the profitability of Islamic Banks in Indonesia. This type of research is quantitative. The data collection method used is the documentation method and library study method. The sampling technique uses purposive sampling with the criteria of Islamic commercial banks that publish annual-reports from 2013 to 2017 from 13 Islamic commercial banks (BUS) in Indonesia. The results of this study show that the Funding and Investment, Products and Services, Employees, Community or Social, Environmental, Corporate Governance simultaneously does not have influence significantly the ROE variable, but it does significantly influence to ROA. Means that the wider the Islamic social reporting of Islamic banking, the greater the profitability of Islamic banking. In addition, high profitability will encourage managers to provide more detailed information, because they want to convince investors of company profits and its compensation for management.

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