scholarly journals Pengaruh Karakteristik Dewan Pengawas Syariah Terhadap Tingkat Financial Soundness Bank Syariah di Indonesia Tahun 2015-2019

2021 ◽  
Vol 3 (2) ◽  
pp. 414-431
Author(s):  
Suci Oktamirza ◽  
Vanica Serly
Keyword(s):  
Supervisory Board ◽  
Total Sample ◽  
Islamic Banks ◽  
Z Score ◽  
Additional Test ◽  
Financial Service Authority ◽  
Board Size ◽  
Board Characteristics ◽  
Education Levels ◽  
Financial Soundness

This study aims to examine the effect of Shari’ah Supervisory Board characteristics on financial soundness of Islamic banks in Indonesia. This research was conducted by quantitavie method and used data of Islamic banks listed in Financial Service Authority of Indonesia (OJK) at 2015-2019. Total sample was 13 islamic banks for each period. This research used RGEC method as main and newest measurement financial soundness of Indonesian banks. This research also used CAMEL method and Z-Score method as a robustness or additional test. Characteristics of Shari’ah Supervisory Board in this research represented by board size, multi-position, board education levels and meeting frequency.The result of this this study conclude that board size only affects financial soundness of Islamic banks from GCG mechanism and Cash Adequacy Ratio aspects. And multi positions of board will affects financial soundness of Islamic banks from Non Performing Financing, Return On Assets and Operational Expense Toward Operational Income aspects. While, board education levels didn’t have any significant impact on financial soundness of Indonesian Islamic banks in every aspects of RGEC method. And the meeting frequency only affects financial soundness of Indonesian Islamic banks from Operational Expense Toward Operational Income aspects. CAMEL method as the first robustness test showed that all of Shariah Supervisory Board characteristics didn’t have any significant impact on financial soundness of Indonesian Islamic banks while, the Z-Score as the second additional test found that only multi position which was give a significant impact on financial soundness of Indonesian Islamic banks.

The Role of Shariah Supervisory Board in Legitimizing the Existence of Sudanese Islamic Banks through Social Responsibility Reporting

2021 ◽  
Vol 12 (3) ◽  
pp. 432-440
Author(s):  
Azam Abdelhakeem Khalid Et.al
Keyword(s):  
Social Responsibility ◽  
Information Disclosure ◽  
Cultural Context ◽  
Supervisory Board ◽  
Theoretical Implication ◽  
Annual Reports ◽  
Islamic Banks ◽  
Legitimacy Theory ◽  
Board Size

Purpose -This study empirically investigates the function of Shariah Supervisory Board (SSB) in legitimizing the social and ethical existence of Sudanese banks through the dissemination of data onIslamic social in annual reports. Design/methodology/approach -The paper examines a panel dataset covering the period 2006 – 2015 through the use of disclosure index and content analysis from 150annual reports of Sudanese banks. The role of SSB is expressed from the aspects of Corporate Governance mechanisms (i.e. board size, independency, doctoral qualification, cross- directorship, and the overall effect of SSB mechanisms).The current study employs the multiple regression models by using STATA-13 statistical toolin answering the research questions. Findings -The empirical results indicate that the board size, doctoral qualification, and cross-directorship of the members were positively correlatedwith the disclosure degree of Islamic Corporate Social Responsibility (ICSR) in the annual reports of Sudanese Islamic banks, which is in favour of legitimacy theory. Meanwhile, results indicate that, in contrary to legitimacytheory’s assumptions,the independence of SSB members is found to negatively correlate with the ICSR level of disclosure of the sampled Sudanese banks’ annual reports. Furthermore, the overall effects of SSB mechanisms are found to positivelyimpact the ICSR disclosure level. The study’sfindings add new empirical evidence to support the view that social information disclosure by companies is influenced by country- cultural context within which the company operates. Theoretical implication - In theory, this paper offers an analysis on CSR in Sudan from Islamic point of view. This paper is vital in view that social responsibility is highly regarded by Islam. Therefore, social responsibility must be adopted by all Islamic organizations, particularly the Islamic banks. Originality/value – From the researchers’ perspective, this study is the pioneer thatinvestigates the role of SSB on Sudanese Islamic banks through social responsibility reporting using legitimacy theory.

Financial soundness of Islamic banks: does the structure of the board of directors matter?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Afef Khalil ◽  
Imen Ben Slimene
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Islamic Banks ◽  
Z Score ◽  
Data Set ◽  
Content Type ◽  
Additional Hypothesis ◽  
The Board Of Directors ◽  
Financial Soundness ◽  
The Impact

Purpose The purpose of this paper is to examine the Board of Directors’ characteristics and their impact on the financial soundness of Islamic banks. Design/methodology/approach Regression analysis is applied to test the impact of the Board of Directors’ characteristics on the financial soundness of Islamic banks, using a panel data set of 67 Islamic banks covering 20 countries from 2005 to 2018. The Z-score indicator is used to evaluate the Islamic banks’ soundness. To check the robustness of the results, this paper uses other dependent variables (CAMEL) than the Z-score. Findings The main results show that the presence of an independent non-executive director negatively impacts the financial soundness of Islamic banks, while the chief executive officer duality practice has a positive effect on it. Other characteristics of the Board of Directors do not significantly impact the financial soundness of Islamic banks (foreign director, institutional director, chairman with a Shari’ah degree, interlocked chairman and the Board of Directors’ size). Practical implications This study aims to fill the gaps in the literature that discuss the Board of Directors’ role in corporate governance and its impact on the financial soundness of Islamic banks. In other words, it shows the role played by the Board of Directors and improves the knowledge of the corporate governance-financial soundness relationship. Plus, managers, investors and regulators may gain evocative insights, particularly those looking to improve their Islamic banks’ soundness by restructuring their boards’ composition. Originality/value This study sheds new light on the literature on Islamic banking by clarifying the relationship between the Board of Directors and the financial soundness of Islamic banks. Contrary to previous research, this paper uses an additional hypothesis stating that a chairman with a Shari’ah degree (Fiqh Muamalt) has a positive impact on the financial soundness of Islamic banks.

Can Shariah board characteristics influence risk-taking behavior of Islamic banks?

2019 ◽  
Vol 12 (4) ◽  
pp. 469-488 ◽  
Author(s):  
Amal AlAbbad ◽  
M. Kabir Hassan ◽  
Irum Saba
Keyword(s):  
Risk Taking ◽  
Supervisory Board ◽  
Annual Reports ◽  
Islamic Banks ◽  
Content Type ◽  
Asset Return ◽  
Board Characteristics ◽  
The Relationship ◽  
Risk Taking Behaviors ◽  
Practical Implications

Purpose The purpose of this paper is to study whether the characteristics of the Shariah Supervisory Board (SSB) can influence the risk-taking behaviors of Islamic banks. Design/methodology/approach The data on governance were collected from 70 Islamic banks’ annual reports across 18 countries for the period from 2000 to 2011 to investigate the relationship between SSB’s characteristics including size, busyness and foreign board and the Islamic banks’ risk activities. Findings The size of SSB and the proportion of busy board in SSB positively and significantly influence Islamic banks’ asset return and insolvency risks. Foreign members are more effective in monitoring banks’ Shariah compliance. Further analysis provides some evidence that most of the findings on the associations between the SSB structure and bank risk are derived from countries in the Gulf Cooperation Council where Shariah governance is ruled internally at the bank level. Practical implications There is a need for better Shariah board characteristics in place that complement with other governance mechanisms to well comprehend the main purpose of Islamic banks. Originality/value SSB board busyness and foreign characteristics appear to influence the risk-taking behaviors of Islamic banks.

The impact of the board of directors and the Shariah board on the financial soundness of Islamic banks

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Afef Khalil
Keyword(s):  
Board Of Directors ◽  
Capital Adequacy ◽  
Islamic Banks ◽  
Z Score ◽  
Data Set ◽  
Content Type ◽  
The Board Of Directors ◽  
Financial Soundness ◽  
The Impact ◽  
The Relationship

Purpose The purpose of the study is to examine the relationship between the board of directors (BODs) and the Shariah board (SB) and assess its impact on the financial soundness of Islamic banks (IBs). Design/methodology/approach The authors use a regression model to test the effects of the relationship between the BOD and the SB on the financial soundness of IBs by applying a panel data set of 61 IBs, covering 18 countries from 2008 to 2014. The dependent variable is the Z-score indicator. To test the robustness of the results, the authors use dependent variables other than the Z-score [A rating of Capital adequacy (C), Asset quality (A), Management (M), Earnings (E), Liquidity (L), and Sensitivity (S) (CAMELS)] for 2018. Findings The results show that meetings between directors and SB members significantly reduce the financial soundness of IBs. The relationship between the BOD and the SB increases conflicts of interest and agency costs. However, a representation of the SB at the BOD meetings and vice versa does not affect financial soundness. The Accounting and Auditing Organization for Islamic Financial Institutions and the Islamic Financial Services Board corporate governance standards do not require the presence of the SB representative at the BOD meetings or vice versa, which justifies the results. Practical implications This study attempts to fill gaps in the literature by investigating the impact of meetings between the SB and the BOD on the financial soundness of IBs across the world. The results suggest that the BOD’s frequent interference in the affairs of the SB can have adverse effects on IBs and should be avoided. Originality/value The authors depart from the previous literature by using three new characteristics that link the BOD to the SB. Methodologically, the authors use three new measures to evaluate this relationship and its effect on the financial soundness of IBs. This study is unique because it explores the comparative impacts of the presence of a SB representative at the BOD meetings and a director at the SB meetings and meetings between the two governing boards of IBs.

scholarly journals Pengaruh Karakteristik Dewan Pengawas Syari’ah dan Ukuran Dewan Komisaris terhadap Pengungkapan Islamic Social Reporting

2020 ◽  
Vol 2 (1) ◽  
pp. 25
Author(s):  
Firman Setiawan
Keyword(s):  
Linear Regression ◽  
Multiple Linear Regression ◽  
Commercial Bank ◽  
Commercial Banks ◽  
Annual Report ◽  
Supervisory Board ◽  
Education Level ◽  
Social Reporting ◽  
Board Size ◽  
Board Characteristics

This study aims to determine the effect of Shari'ah Supervisory Board Characteristics (DPS Size, DPS Education Level, and DPS Expertise) and Board of Commissioners Size on Islamic Social Reporting (ISR) Disclosure at Shari'ah Commercial Banks in 2018. Population in this study is a Sharia Commercial Bank in Indonesia in 2018. Data is obtained from the bank's annual report. The data is presented and analyzed quantitatively using multiple linear regression. Based on the analysis conducted, it is known that the Shari'ah Supervisory Board Size, Shari'ah Supervisory Board Education Level and the Shari'ah Supervisory Board Expertise partially have no significant effect on Islamic Social Reporting (ISR) Disclosure, while the Size of the Board of Commissioners has a significant effect on Islamic Social Reporting (ISR) Disclosures. Simultaneously, DPS Characteristics and Board of Commissioners Size significantly influence Islamic Social Reporting (ISR) Disclosure.

scholarly journals PERFORMANCE BANK BNI SYARIAH DI MASA PANDEMI COVID-19

2021 ◽  
Vol 7 (2) ◽  
Author(s):  
Dwi Nur'aini Ihsan ◽  
Muhamad Nadratuzzaman Hosen
Keyword(s):  
Potential Risk ◽  
Cost Efficiency ◽  
Secondary Data ◽  
Islamic Banks ◽  
Z Score ◽  
Bank Efficiency ◽  
Bank Management ◽  
Net Profit ◽  
Financial Soundness ◽  
Score Model

The performance of Islamic banks during the Covid-19 pandemic has had an impact on the financial soundness of Islamic Banks. Islamic Banks in Indonesia should restructure the Financing (PYD) which results in the acquisition of revenue and net profit received by the bank. The aims of this study are to analyze the soundness of Bank BNI Syariah using the CAMEL, RGEC method, the level of cost efficiency and profitability. Then also measured the potential for BNIS bankruptcy with the Altman Z-Score model. The potential risk of bankruptcy in Islamic Banks is very possible if bank management during the Covid-19 pandemic are not carried out properly and professionally. Secondary data is used during the period 2015 to 2020 to analyze the performance of Islamic Banks before the pandemic and during the pandemic. The results of the CAMEL and RGEC analysis show that soundness conditions varied from "Not Very Good" to "Very Good" from 2015 to 2020. In 2020 the soundness condition of BNIS is "Fairly Good". Meanwhile, the Altman Z-Score shows that BNIS is experiencing a “Not Bankrupt” condition, the level of bank efficiency is “High” and at analysis of profitability as reflected by the ROA ratio, ROE during the pandemic has decreased.

scholarly journals The Interplay between Board Characteristics, Financial Performance, and Risk Management Disclosure in the Financial Services Sector: New Empirical Evidence from Europe

2021 ◽  
Vol 14 (2) ◽  
pp. 79
Author(s):  
Gratiela Georgiana Noja ◽  
Eleftherios Thalassinos ◽  
Mirela Cristea ◽  
Irina Maria Grecu
Keyword(s):  
Risk Management ◽  
Financial Performance ◽  
Financial Services ◽  
Structural Equation ◽  
Supervisory Board ◽  
Fiscal Year ◽  
Services Sector ◽  
Board Characteristics ◽  
Financial Services Sector ◽  
Thomson Reuters

This paper empirically evidences the role played by board characteristics (skills, diversity, structure, independence) in supporting risk management disclosure and shaping the financial performance of European companies operating in the financial services sector. We exploit data selected from Thomson Reuters Eikon database in 2020 for the last fiscal year 2019 (FY0) on a longitudinal sample of 144 companies with the head offices in Europe (25 countries). Following an original empirical approach based on two modern financial econometric techniques, namely structural equation modelling (SEM) and network analysis through Gaussian graphical models (GGMs), the research endeavor outlines the decisive importance of an optimal board size, enhanced management skills, upward gender diversity (encompassed by women participation on board management), and structure (mainly a two-tier type, one management board, and a distinctive supervisory board) as fundamentals of risk management strategies, leading to improved financial achievements and a higher profitability for the analyzed companies.

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