scholarly journals Corporate governance and financial performance in Islamic banks: the role of the sharia supervisory board in multiple-layer management

2019 ◽  
Vol 14 (4) ◽  
pp. 183-191 ◽  
Author(s):  
Darwanto ◽  
Anis Chariri
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Board Of Directors ◽  
Commercial Banks ◽  
Supervisory Board ◽  
Capital Adequacy ◽  
Islamic Banks ◽  
Return On Assets ◽  
Capital Adequacy Ratio ◽  
The Board Of Directors

This study aims to investigate the impact of Good Corporate Governance (GCG) on the financial performance of sharia banking. GCG is measured by the Board of Commissioners Performance, the Board of Commissioners Composition, the Number of Audit Committees, the Board of Directors, and the Sharia Supervisory Board Performance, whereas financial performance is proxied by Return on Assets, financing risk (Non-Performing Financing), and capital (Capital Adequacy Ratio). Sharia commercial banks registered by Bank Indonesia made the sample of this study. Annual reports and GCG reports of sharia commercial banks from 2014 to 2017 are used as a data source. The study uses a panel data regression approach to analyze the data; some interesting results have been obtained. The Sharia board positively affected financial performance of Islamic banks in terms of return on assets and capital adequacy ratio, and negatively as to non-performing financing. Similarly, the board of directors had a significant impact on the financial performance of Islamic banks in the same direction as the sharia supervisory board in terms of the three components. Meanwhile, the board of commissioners had a significant and positive impact only on the return on assets of Islamic banks in Indonesia.

scholarly journals Pengaruh Corporate Governance terhadap Profitabilitas Bank Umum Syariah (BUS) Indonesia Periode 2011-2016

2019 ◽  
Vol 4 (1) ◽  
pp. 98
Author(s):  
Jielend Ariandhini
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Board Of Directors ◽  
Commercial Banks ◽  
Audit Committee ◽  
Supervisory Board ◽  
Sampling Technique ◽  
Return On Assets ◽  
The Board Of Directors ◽  
Independent Variable

This study aims to determine the effect of Corporate Governance (CG) as measured by the composition of the board of commissioners, the composition of the board of directors, the composition of the audit committee and the composition of the syariah supervisory board on the profitability of sharia commercial banks as measured by Return On Assets (ROA). The Method of this research is quantitatif by using secondary data with documentation technique. The population used in this study is all sharia commercial banks, based on the financial statements of each bank. The observation period in this research is from 2011 to 2016. The sampling technique is done by purposive sampling method. There are 5 banks, namely Bank Muamalat, Bank Sharia Mandiri, Bank Negara Indonesia Sharia, Bank Rakyat Indonesia Sharia, Bank Central Asia Sharia. Data analysis technique used in this research is panel regression. The results showed that independent variables of board of commissioner and syariah supervisory board have no significant effect on financial performance measured by Return on Asset (ROA). The independent variable of the board of directors has a positive and significant impact on the financial performance measured using Return on Assets (ROA), and the audit committee independent variable has a negative and significant effect on the financial performance measured using Return on Assets (ROA).

scholarly journals Corporate Governance dan Kinerja Keuangan

2020 ◽  
Vol 17 (4) ◽  
pp. 566-589
Author(s):  
Haniatus Sa’diyah
Keyword(s):  
Corporate Governance ◽  
Data Analysis ◽  
Panel Data ◽  
Financial Performance ◽  
Board Of Directors ◽  
Commercial Banks ◽  
Sampling Method ◽  
Supervisory Board ◽  
Testing Methods ◽  
The Board Of Directors

This study aims to determine the effect of corporate governance as proxied by the Board of Commissioners, the Board of Independent Commissioners, the Board of Directors and the Sharia Supervisory Board on Financial Performance, through a connecting variable, namely Non Performing Financing (NPF). The sample of this research is using purposive sampling method. The population is 13 Islamic Commercial Banks in Indonesia. The samples obtained were 8 Islamic Commercial Banks. The data is obtained from the quarterly reports of each bank, namely the first quarter of 2017 to the second quarter of 2020. Data analysis and hypothesis testing methods use path analysis using panel data. The results of this study indicate that corporate governance as proxied by the Board of Commissioners, the Independent Commissioner, the Board of Directors and the Sharia Supervisory Board has no effect on financial performance and non-performing financing. This means that higher corporate governance does not affect financial performance or non-performing financing. In this study it was also found that non-performing financing has an effect on financial performance. If non-performing financing decreases, financial performance will increase. In addition, non-performing financing in this study cannot be an intervening variable for corporate governance.

scholarly journals PENGARUH PENILAIAN KESEHATAN BANK TERHADAP KINERJA KEUANGAN BANK SYARIAH DI INDONESIA

2018 ◽  
Vol 3 (2) ◽  
pp. 409
Author(s):  
Welly Welly ◽  
Kurnia Krisna Hari
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Commercial Banks ◽  
Financial Statements ◽  
Capital Adequacy ◽  
Islamic Banks ◽  
Good Corporate Governance ◽  
Capital Adequacy Ratio ◽  
Operating Margin ◽  
Bank Soundness

This study aims to provide empirical evidence about the effect of bank soundness by using Risk Profile, Good Corporate Governance, Earnings, Capital (RGEC) methods on the financial performance of sharia commercial banks in Indonesia. The formulation of the problem in this research is whether there is an effect of the soundness of the Islamic Commercial Bank with the RGEC method with the banking performance in Indonesia in the 2011-2015 period? How much influence does the bank's health level have on the RGEC method on the performance of Islamic Banks in Indonesia? The research sample consisted of 7 Islamic banks in Indonesia. The data used are quarterly financial statements of sharia commercial banks and GCG implementation reports. The statistical method used to test the research hypothesis is multiple linear regression. The results of data testing stated that there was no heterocedasticity, autocorrelation, multicollinearity, and data with normal distribution. The results showed that Non Performing Financing (NPF), Financing to Deposit Ratio (FDR), Net Operating Margin (NOM) and Capital Adequacy Ratio (CAR) had an influence on the financial performance of Islamic commercial banks, while Good Corporate Governance (GCG) did not have influence on the financial performance of Islamic commercial banks. The effect of bank soundness on the financial performance of Islamic banks was 39.40%, while 60.60% was influenced by other factors outside this study.

scholarly journals The Effect of Good Corporate Governance Implementation on Islamic Bank Financial Performance

2021 ◽  
Vol 10 (1) ◽  
pp. 55-61
Author(s):  
Amrina Rosada
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Board Of Directors ◽  
Audit Committee ◽  
Stock Exchange ◽  
Supervisory Board ◽  
Return On Assets ◽  
Good Corporate Governance ◽  
The Board Of Directors ◽  
Independent Variable

This study aims to examine the effect of Good Corporate Governance on Financial Performance at Islamic Banks. The independent variable in this study is Good Corporate Governance as measured by the board of directors, the independent board of commissioners, the islamic supervisory board and the audit committee. The population in this study were 11 Islamic commercial banks listed on the Indonesia Stock Exchange. This research data was obtained from the annual report for 2015-2019. The results showed that the audit committee has an effect on financial performance as measured by return on assets, while the board of directors, independent commissioners, and islamic supervisory board has no effect on financial performance as measured by return on assets. Together the board of directors, independent commissioners, islamic supervisory board and audit committee have an effect on return on asset.

Corporate Governance in Islamic Banks

2021 ◽  
pp. 322-337
Author(s):  
Sami Ben Mim ◽  
Yosra Mbarki
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Supervisory Board ◽  
Islamic Banks ◽  
Governance Mechanism ◽  
Governance Mechanisms ◽  
Transmission Channels ◽  
Corporate Governance Mechanisms ◽  
The Board Of Directors ◽  
Corporate Governance Mechanism

This study investigates the efficiency of the Shariah supervisory board as a corporate governance mechanism in Islamic banks. The authors mainly seek to examine the effect of the Shariah board's composition (size and academic background of its members) on the performance of Islamic banks. They also try to highlight the transmission channels explaining this effect, and compare the efficiency of the Shariah board with that of traditional corporate governance mechanisms, namely the board of directors. The empirical investigation is based on a sample of 72 Islamic banks from 19 countries. Estimation results suggest that the Shariah board positively affects the Islamic banks performance through the number of Islamic Shariah scholars. This effect is mainly due to the size and cost transmission channels. These results are robust to different performance measures. On the other hand, results show that the board of directors' size produces a positive effect on a bank's performance, offering evidence for complementarity between traditional and Islamic governance mechanisms.

scholarly journals The Effect of Good Corporate Governance Mechanism On The Financial Performance of Banking Companies Listed In Stock Exchange Indonesia 2012-2016

2019 ◽  
Vol 3 (2) ◽  
pp. 273-287
Author(s):  
Desi Pipian Pujakusum
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Board Of Directors ◽  
Audit Committee ◽  
Stock Exchange ◽  
Governance Mechanism ◽  
Return On Assets ◽  
Good Corporate Governance ◽  
The Board Of Directors ◽  
Corporate Governance Mechanism

This study aims to examine the effect of good corporate governance mechanism on the financial performance of banking companies listed on the Indonesian Stock Exchange 2012-2016 period. The corporate governance mechanism is proxied by the size of the board of directors, the size of the board of commissioners, audit committee size, the board of director's education, and the board of commissioner’s education. The company's financial performance is proxied by return on assets (ROA). Samples were taken by using purposive sampling. The total number of samples used in this study amounted to 180 research samples. This study was tested with SPSS 20 program. Data analysis technique used in this research is simple regression analysis.  The results showed that the size of the board of directors, the size of the board of commissioners, and audit comitee size have a significant effect on return on assets. These three factors have a significant effect on return on assets, while the board of commissioners education and the board of director's education have no significant effect on return on assets.

scholarly journals Corporate Governance Independence in the Board of Directors and The Firms Financial Performance: Empirical Analysis of Cement Sector Firms Listed on Pakistan Stock Exchange (PSX)

2021 ◽  
Vol 09 (01) ◽  
pp. 01-24
Author(s):  
Muhammad Noman Ansari ◽  
◽  
Dr. Sayed Fayaz Ahmed
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Board Of Directors ◽  
Stock Exchange ◽  
Agency Cost ◽  
Independent Directors ◽  
Return On Assets ◽  
Return On Equity ◽  
Board Committees ◽  
The Board Of Directors

The corporate governance measures emphasize on presence of independence of the board of directors to bring objectivity and reducing the agency cost; whereas the institutions have the ability, skills and time to supervise the activities of the management and channelize it to better financial performance. The objective of this study is to explore the effect of independence of the board of directors on the financial performance of the firms. The independence was gauged by number of independent directors and non-executive directors, chairing of board committees by independent directors, institutional holding in the firm, and presence of institutional directors on the board. The financial performance of the firm is gauged using the return on equity (ROE) and return on assets (ROA). The corporate governance and financial performance data comprising of 75 firm years from 2014 to 2018 of the firms listed in the cement sector of the Pakistan Stock Exchange (PSX) were selected. GLM regression was performed to study the relationship between the variables. The results suggest that the majority of independence on the board of directors do not affect the financial performance of the firm; the independence in the board committees negatively affects the financial performance, whereas the presence of institutional holding and director in the firm does not have any effect on the performance of the firm. The study will provide a basis for future studies to find the association that independence can bring objectivity, reduce agency cost, and affect the performance of the firm.

scholarly journals Mengukur Kinerja Pra Merger Tiga Bank Umum Syariah dan Pengaruhnya Terhadap Return on Asset

2021 ◽  
Vol 8 (1) ◽  
pp. 70-78
Author(s):  
Hanif Artafani Biasmara ◽  
Pande Made Rahayu Srijayanti
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
Secondary Data ◽  
Capital Adequacy ◽  
Third Party ◽  
Return On Assets ◽  
Financial Reports ◽  
Operating Income ◽  
Performance Variables ◽  
Capital Adequacy Ratio

Abstrak  - Pada tahun 2020, telah ditetapkan pelaksanaan merger antara tiga Bank Umum Syariah yang merupakan anak perusahaan dari Bank Badan Usaha Milik Negara (BUMN). Dimana ketiga bank tersebut adalah PT Bank Syariah Mandiri, PT Bank BRIsyariah, Tbk, dan PT Bank BNI Syariah. Penelitian ini dilakukan untuk mengukur kinerja keuangan ketiga bank tersebut sebelum dilakukannya merger dan pengaruhnya terhadap Return on Asset (ROA). Dalam penelitian ini, kinerja keuangan akan diukur dengan variabel Capital Adequacy Ratio (CAR), Financing to Deposit Ratio (FDR), Non Performing Financing (NPF), Biaya Operasional dan Pendapatan Operasional (BOPO), dan persentase pertumbuhan Dana Pihak Ketiga (DPK). Data yang digunakan dalam penelitian ini merupakan data sekunder yang diperoleh melalui laporan keuangan tahunan dari masing-masing bank dengan periode tahun 2015-2019. Dimana data diolah dan dianalisis dengan menggunakan Regresi Linear Data Panel melalui perangkat lunak Stata 16. Kinerja ketiga Bank Umum Syariah sebelum dimerger menunjukkan hasil yang baik. Selama lima tahun terakhir CAR dan NPF memiliki kinerja yang memuaskan. FDR dan BOPO berada sedikit melenceng dari batas minimum ataupun maksimum. Berikutnya, pertumbuhan DPK rata-rata sebesar 15, 89333%. Seluruh variabel kinerja bank tersebut setelah dilakukan pengolahan data, menunjukkan bahwa variabel CAR, FDR, NPF, BOPO, dan pertumbuhan DPK bersama-sama memiliki pengaruh signifikan terhadap ROA. Sedangkan secara parsial, CAR, NPF, dan pertumbuhan DPK tidak memiliki pengaruh signifikan terhadap ROA. Tetapi FDR dan BOPO memiliki pengaruh signifikan terhadap ROA. Dimana melalui penelitian ini diharapkan dapat menjadi pertimbangan bagi PT Bank Syariah Indonesia Tbk dalam upaya memperoleh kinerja yang baik dan pertumbuhan profitabilitas yang tinggiKata Kunci: CAR, FDR, NPF, BOPO, Pertumbuhan DPK, ROA, Bank Umum Syariah Abstract - In 2020, the implementation of a merger between three Islamic Commercial Banks which are subsidiaries of the State-Owned Enterprise (BUMN) Bank has been determined. Where the three banks are PT Bank Syariah Mandiri, PT Bank BRIsyariah, Tbk, and PT Bank BNI Syariah. This research was conducted to measure the financial performance of the three banks before the merger, and their effect on Return on Assets (ROA). In this study, financial performance will be measured by the variable Capital Adequacy Ratio (CAR), Financing to Deposit Ratio (FDR), Non-Performing Financing (NPF), Operational Costs and Operating Income (OEOI), and the percentage growth in Third Party Funds (TPF).The data used in this study is secondary data obtained through the annual financial reports of each bank for the period 2015-2019. Where the data is processed and analyzed using Linear Data Panel regression through Stata 16. The performance of the three Islamic Commercial Banks before the merger showed good results. Over the last five years, CAR and NPF have performed satisfactorily. FDR and BOPO have slightly deviated from the minimum or maximum limits. Next, the growth in deposits was an average of 15.89333%. All of these bank performance variables, after data processing, show that the variables CAR, FDR, NPF, OEOI, and TPF growth together have a significant effect on ROA. Meanwhile, partially, CAR, NPF, and TPF growth have not a significant effect on ROA. However, FDR and BOPO have a significant effect on ROA. Where through this research it is hoped that in the future it can be a consideration for PT Bank Syariah Indonesia, Tbk to obtain good performance and high profitability growth.Keywords: CAR, FDR, NPF, OEOI, TPF Growth, ROA, Islamic Commercial Banks

scholarly journals Kinerja Keuangan Sebelum dan Sesudah Penerapan Good Corporate Governance pada PT. Bank Pembangunan Daerah Bali

2020 ◽  
Vol 30 (7) ◽  
pp. 1750
Author(s):  
Ida Bagus Odi Rezky Saputra ◽  
Ni Made Dwi Ratnadi
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Study Data ◽  
Capital Adequacy ◽  
Literature Study ◽  
Return On Assets ◽  
Return On Equity ◽  
Operating Income ◽  
Good Corporate Governance ◽  
Capital Adequacy Ratio

This research is in the form of observations on PT Bank Pembangunan Bali which has implemented Good Corporate Governance. The data collection method uses documentation study data and literature study. This is intended to obtain a clearer picture in order to solve the problem under study. Analysis of the data used includes an analysis of financial performance based on liquidity ratios, profitability and solvency. The results of this study indicate an increase in financial performance after the implementation of Good Corporate Governance when viewed using Return on Assets, Operating Expenses / Operating Income, Capital Adequacy Ratio, Non-Performing Loans. Meanwhile, if viewed through the ratio of Loan to Deposit and Return on Equity the study found a decrease in performance after the implementation of Good Corporate Governance. Keywords: Good Corporate Governance; Financial Performance; Bank.

scholarly journals THE INFLUENCE OF FINANCIAL RATIOS AND GOOD CORPORATE GOVERNANCE TOWARDS FINANCIAL DISTRESS ON ISLAMIC BANKS IN INDONESIA

2020 ◽  
Vol 5 (1) ◽  
pp. 1
Author(s):  
Nandita Salatifa Diwanti ◽  
Purwanto .
Keyword(s):  
Corporate Governance ◽  
Financial Distress ◽  
Quantitative Research ◽  
Negative Influence ◽  
Capital Adequacy ◽  
Islamic Banks ◽  
Financial Service Authority ◽  
Return On Assets ◽  
Good Corporate Governance ◽  
Capital Adequacy Ratio

<p>This research aims to empirically prove the influence of debt to total assets ratio, capital adequacy ratio, total assets turnover, return on assets, and good corporate governance towards financial distress by Altman Z-Score. This research uses the population of Islamic banks published in the Financial Service Authority during the period 2013-2018, where the data is collected from official bank websites. Adopting a quantitative research and has 72 observations from 12 banks in six years. The result shows that capital adequacy ratio and return on assets have significant positive influence towards financial distress. While debt to total assets ratio has the significant negative influence to financial distress. However, total assets turnover and good corporate governance have a negative insignificant influence to Financial Distress. Simultaneously, all independent variables have a significant influence on financial distress, which is indicated by a value of 59.9%.<strong></strong></p>

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