The effect of intellectual capital and shariah supervisory boards on social performance of Islamic banks

This study examined Islamic banks' social performance by considering Intellectual Capital (IC) and Shariah Supervisory Boards (SSB) as antecedents. More specifically, it examined the antecedents that can exert the role of IC and governance mechanism of SSB in enhancing Islamic banks’ social performance. Therefore, this study empirically analyzed the effect of IC and SSB on social performance in Indonesian Islamic banks with a sample of 14 Islamic banks throughout the period 2008-2019. To test the research hypotheses, panel data regression model analysis was applied. The results did not establish a positive impact of intellectual capital on the banks’ social performance. This result indicated that the size of intellectual capital might not lead to better social performance. This outcome may be due to IC still being the focus of financial performance such that it has not been utilized to optimize the social performance of Islamic banks. The results also showed that SSBs have a positive effect on social performance. It can be concluded that Supervisory Boards could monitor the social activities conducted by Islamic banks, leading to an improvement in the activities. This study helps to bolster the understanding of the role of IC and SSB governance in enhancing the social performance function of Islamic banks.

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Apakah Frekuensi Rapat DPS, Profitabilitas dan Surat Berharga Syariah Berpengaruh pada Islamic Social Reporting Index?

AKTSAR Jurnal Akuntansi Syariah ◽

10.21043/aktsar.v4i2.12040 ◽

2021 ◽

Vol 4 (2) ◽

pp. 138

Author(s):

Ethika Suri Marefsi ◽

Kurnia Kurnia ◽

Febrial Pratama

Keyword(s):

Financial Services ◽

Positive Impact ◽

Supervisory Board ◽

Social Reporting ◽

Islamic Banks ◽

Panel Data Regression ◽

Data Regression ◽

Supervisory Boards ◽

The Government ◽

The Impact

This research aims to identify the factors that impact the Islamic Social Reporting of Sharia Banks in Indonesia. The dependent variable used is Islamic Social Reporting disclosure. At the same time, the independent variables are the meeting frequency of the sharia supervisory board, profitability, and the issuance of shariah securities. The population is all Islamic Banks listed on Financial Services Authority in Indonesia during the period 2014-2020. There are 11 companies selected as samples based on the purposive sampling method. This research uses the panel data regression tested by Eviews 11 software. The result found that the issuance of shariah securities had a positive impact. Although, the meeting frequency of shariah supervisory boards and profitability had no impact on Islamic Social Reporting. These results can be used as a reference for further research on the impact meeting frequency of shariah supervisory board, profitability, and the issuance of shariah securities. In addition, it can also be used as knowledge for companies that the issuance of Islamic securities can be a tool for Islamic banks to disclose Islamic Social Reporting fully. It is hoped that the government will make official standard rules regarding social responsibility reporting for Islamic entities. Keywords: Islamic Social Reporting; meeting frequency of shariah supervisory board; profitability; sharia securities issuance

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Impact of Competition on Social Performance of MFIs: Comparative Analysis of India and Bangladesh

Vision The Journal of Business Perspective ◽

10.1177/0972262919875536 ◽

2019 ◽

Vol 24 (2) ◽

pp. 160-170

Author(s):

Joyeeta Deb

Keyword(s):

Panel Data ◽

Social Performance ◽

Microfinance Institutions ◽

Loan Repayment ◽

Panel Data Regression ◽

Data Regression ◽

The Social ◽

Determining Factors ◽

Loan Quality ◽

The Impact

Although studies encompassing the different aspect of microfinance like sustainability of microfinance institutions (MFIs), role of microfinance in poverty alleviation, etc., have enriched the literature from time to time, studies on competition and its impact on social performance of MFIs are scarce. There also exists lacking consensus as to how can competition influence MFIs’ social performance. The empirical evidence reveals duality of opinion. With information asymmetry, competition enhances borrowers’ indebtedness and lowers expected loan repayment and impeding loan quality. Furthermore, in order to overcome these problems, MFIs would engage in more screening that raises their operational costs. This encumbers the sustainability of MFIs. Thus, the socially oriented MFIs, in order to remain sustainable, start targeting the less poor borrowers. But the other view holds that as competition intensifies, it provokes the MFIs to remain committed with the social objective and to strive to retain the clients. The theory on impact of competition on the social performance of MFIs may be either positive or negative, which calls for further investigation. Against this backdrop, this article attempts to assess the impact of competition on social performance of MFIs in India and Bangladesh. The study is conducted over 53 MFIs from India and 20 MFIs from Bangladesh on which a complete set of data is available. The study period is confined to 9 years from 2009 to 2017. In order to establish the association between competition and MFIs’ social performance, panel data regression is used. The study takes into account the depth and breadth of outreach as the dependent variable. The study uses panel data regression to establish the association between competition and social performance of MFIs. The empirical analysis reveals that competition has no significant association with any of the measures of social performance. This implies that social performance in the sector is explained by other factors. Amongst the country-specific variables, it is clear from analyses that gross domestic product (GDP) and inflation are important determining factors of MFIs’ social performance. Country of origin (COO) of the MFIs is one of the determining factors for social performance as it is found to be significant for three out of the four models. It is also evident from the analyses that Bangladeshi MFIs have a greater impact on MFIs’ social performance in terms of outreach in comparison to Indian MFIs. While for percentage of female borrowers (PFB), Indian MFIs account for greater depth of outreach in comparison to Bangladesh.

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Role of Technology and Entrepreneurship in Economic Development

Technological Innovations for Sustainability and Business Growth - Practice, Progress, and Proficiency in Sustainability ◽

10.4018/978-1-5225-9940-1.ch005 ◽

2020 ◽

pp. 56-70

Author(s):

Amit Singh ◽

Sheetal Maurya

Keyword(s):

Economic Development ◽

Positive Impact ◽

Statistical Significance ◽

Least Square ◽

Technological Readiness ◽

Resource Rents ◽

Panel Data Regression ◽

Data Regression ◽

Entrepreneurial Activities

This chapter examines the role technological readiness and level of entrepreneurial activities has on economic development of select South Asian countries viz; India, Pakistan, Bhutan, and Nepal. As per comparative analysis, India outranks its neighbour countries in term of technological readiness and innovation. The role of entrepreneurial activities in economic development and its statistical significance is studied using Least Square Panel Data Regression using GDP at Current Prices as dependent variable and total number of newly registered LLC, total natural resource rents, government final consumption expenditure, and gross secondary enrollment rate as independent variables. The data on these variables was collected for the period of 2006-2017. The present study reports statistically significant (at 1%) positive impact of government final expenditure and entrepreneurial activities on economic development in select developing countries.

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PERAN PEBANKAN SYARIAH TERHADAP PERTUMBUHAN EKONOMI DI INDONESIA

JAAKFE UNTAN (Jurnal Audit dan Akuntansi Fakultas Ekonomi Universitas Tanjungpura) ◽

10.26418/jaakfe.v9i2.42588 ◽

2020 ◽

Vol 9 (2) ◽

Author(s):

Ilhamdi Ilhamdi

Keyword(s):

Economic Growth ◽

Panel Data ◽

Gross Domestic Product ◽

Positive Impact ◽

Secondary Data ◽

Islamic Banking ◽

Panel Data Regression ◽

Data Regression ◽

Conventional Banks

This study aims to determine the role of Islamic banking on economic growth in Indonesia and to compared it with conventional banks. In recent years, Islamic banking has increased in terms of assets. By using panel data regression, this study examines the effect of Islamic banking on economic growth. Besides that, how big is the level of elasticity to economic growth. This study uses secondary data in the form of Gross Domestic Product (GDP), Islamic banking financing and credit by conventional banks. The results showed that Islamic banking and conventional banks had a positive impact on economic growth with the level of elasticity of Islamic banking still below conventional banks. So the existence of Islamic and conventional banks does not always replace, but complement each other in Indonesia.

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The role of the sharia supervisory board in the relationship of third-party fund and profits

Journal of Islamic Accounting and Finance Research ◽

10.21580/jiafr.2021.3.2.9554 ◽

2021 ◽

Vol 3 (2) ◽

pp. 201-218

Author(s):

Fajria Zakiyah ◽

Prayogo Prasojoharto ◽

Sepky Mardian

Keyword(s):

Supervisory Board ◽

Third Party ◽

Islamic Banks ◽

Financial Reports ◽

Panel Data Regression ◽

Data Regression ◽

The Difference ◽

Relationship Of ◽

Profit Growth

Purpose - This study aims to find empirical evidence of the effect of growth of Third-Party Funds (TPF) on profit growth with the role of the Sharia Supervisory Board (SSB) as moderator in Islamic banks in Indonesia.Method - This research is an associative research with a quantitative approach that used Panel Data Regression and Moderated Regression Analysis (MRA) as the data analysis methods. The research sample was 58 annual financial reports from 14 Islamic Commercial Banks in Indonesia.Result - TPF had a significant positive effect on bank profit growth, but the role of the SSB could not moderate the growth of TPF on the profit growth of Islamic banks.Implication - The implications of this research can strengthen the belief that Islamic banks need to improve the quality of their services and products to maintain the trust of customers and prospective customers to place their funds in Islamic banks.Originality - The difference in this study when compared to other studies is the role of the Sharia Supervisory Board which is positioned as a moderating variable for the growth of Third-Party Funds on profit growth.

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Social Performance of Rural Bank: Impact of Commercialization Factors

Jurnal Dinamika Manajemen ◽

10.15294/jdm.v11i1.23091 ◽

2020 ◽

Vol 11 (1) ◽

pp. 116-126

Author(s):

Hesi Eka Puteri

Keyword(s):

Panel Data ◽

Social Responsibility ◽

Financial Services ◽

Social Performance ◽

Secondary Data ◽

Important Target ◽

Panel Data Regression ◽

Data Regression ◽

The Social ◽

The Impact

Although social performance is an important target in islamic rural bank, this performance is constrained by various factors of commercialization. This study examined the impact of commercialization factors covering profitability, regulation, and competition on the social performance of rural bank. This research was quantitative that based on a survey on fifty units of rural banks in West Sumatera province of Indonesia from 2016 to 2018. The secondary data collected from the publication of financial services authority and other financial documents at rural banks then analyzed with panel data regression. The findings of this research showed that profitability and competition influenced the social performance, meanwhile regulation could not predict the achievement of social performance. This finding reinforced the previous studies which identified the impact of some commercialization indicators towards the achievement of social performance but there was no regulation’s impact on social performance. The impact of regulation which was originally expected to be able to strengthen the social responsibility mission of rural banks evidently did not stimulate the increase of social performance.

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INTELLECTUAL CAPITAL DAN KINERJA SOSIAL PERBANKAN SYARIAH DI INDONESIA: SEBUAH KAJIAN KONSEP DAN EMPIRIS

JEBI (Jurnal Ekonomi dan Bisnis Islam) ◽

10.15548/jebi.v3i2.178 ◽

2018 ◽

Vol 3 (2) ◽

pp. 195

Author(s):

SUHENDA WIRANATA ◽

ALI RAMA

Keyword(s):

Social Capital ◽

Human Capital ◽

Economic Development ◽

Financial Performance ◽

Human Development ◽

Intellectual Capital ◽

Social Performance ◽

Statistical Test ◽

Islamic Banks

The study aims to examine the influence of intellectual capital to social performance of Islamic banks. The study assumes there is an intervening role of financial performance on the relation between intellectual capital and social performance of Islamic banks. The VAIC (valued added intellectual capital) is used to measure the intellectual capital. While social capital of Islamic banks comprises four main aspects which are contribution economic development, society, stakeholders, and human development & research. The financial performance is represented by ROA and ROE. The study finds that intellectual capital of Islamic banks has an increasing performance during the period of the study where human capital is the main backbone. Otherwise, social performances of Islamic banks are relatively fluctuated and tend to remain stable during the period. The statistical test shows that intellectual capital has no significant impact on social performance of Islamic banks. However intellectual capital positively and significantly influences financial performance of Islamic banks.

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The Effect of Intellectual Capital Performance on Company's Financial Performance

Jurnal Reviu Akuntansi dan Keuangan ◽

10.22219/jrak.v10i3.13273 ◽

2020 ◽

Vol 10 (3) ◽

Author(s):

Bella Pramathana ◽

Wahyu Widarjo

Keyword(s):

Financial Performance ◽

Intellectual Capital ◽

Stock Exchange ◽

Value Added ◽

Sampling Technique ◽

Panel Data Regression ◽

Analysis Technique ◽

Data Regression ◽

Study Results

This study analyzes the effect of intellectual capital performance on the company's financial performance in the current year and the following year. We use the Modified Value Added Coefficient (MVAIC) to measure the performance of company's intellectual capital. The research sample is companies listed on the Indonesia Stock Exchange (BEI) 2015-2017 which are included in the High-IC intensive industries category based on the classification of the Global Industries Classification Standard (GICS). Samples were obtained using purposive sampling technique in order to obtain 112 companies with a total of 336 observations. The data analysis technique was conducted by using panel data regression. This study results indicate that intellectual capital performance has positive and significant effect on the company's financial performance for the current year. However, it does not significantly affect the company's financial performance in the following year. This study contributes to the accounting literature development, especially the important role of intellectual capital in improving financial performance of company.

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Pengaruh Dewan Komisaris, Komite Audit, Dan Dewan Pengawas Syariah Terhadap Kinerja Perbankan Syariah

JURNAL EKSPLORASI AKUNTANSI ◽

10.24036/jea.v2i1.229 ◽

2020 ◽

Vol 2 (1) ◽

pp. 2554-2569

Author(s):

Jumainii Azizah ◽

Erinos NR

Keyword(s):

Commercial Banks ◽

Audit Committee ◽

Sampling Method ◽

Empirical Studies ◽

Supervisory Board ◽

Audit Committees ◽

Islamic Banks ◽

Panel Data Regression ◽

Data Regression ◽

Supervisory Boards

This study aims to determine and analyze the influence of the Board of Commissioners, the Audit Committee and the Sharia Supervisory Board on the Performance of Sharia commercial banks Empirical studies on Sharia commercial banks in 2014-2018 both simultaneously and in part. The data analysis method used is panel data regression analysis. Using a purposive sampling method to get a sample of 10 Islamic banks from 12 Islamic banks. Based on the results of the study note that the board of commissioners, audit committees, sharia supervisory boards simultaneously affect the performance of Islamic banks. But partially, the board of commissioners, audit committee, sharia supervisory board did not affect the performance of Islamic Banks in Islamic Banking in 2014-2018.

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Islamic Social Reporting and Financial Distress In List of Sharia Securities

IQTISHADIA Jurnal Kajian Ekonomi dan Bisnis Islam ◽

10.21043/iqtishadia.v13i2.7756 ◽

2020 ◽

Vol 13 (2) ◽

pp. 157

Author(s):

Utari Evy Cahyani ◽

Misnen Ardiansyah ◽

Sunaryati Sunaryati

Keyword(s):

Financial Distress ◽

Stock Exchange ◽

Social Performance ◽

Financial Statements ◽

Social Reporting ◽

Annual Reports ◽

Panel Data Regression ◽

Data Regression ◽

The Social ◽

Index Value

The number of sharia-approved companies in the Indonesia Stock Exchange is growing rapidly. It is important to see how the social performance of these companies, using Islamic Social Reporting Index (ISR Index). Financial Distress as an early sign of a company’s failure is also important to study. This study examines the relation between ISR Index and financial distress in list of sharia securities. The control variables apply in this research are SIZE, ROA, CR, WCTR, DER, and RETA. By using a sample of 129 companies from financial statements and annual reports (2014-2018), three models were built with the Modified Altmans Z-Score, Ohlson O-Score and Zmijewski Zm-Score as a proxy of financial distress. Based on ISR index calculation, the theme of products and services has the highest disclosure score. The lowest disclosure score is corporate governance theme. Panel data regression results show that ISR Index affects financial distress in the Modified Altman’s model. It means the higher the ISR index value, the greater the likelihood of companies run into financial distress. Whereas in Ohlson’s and Zmijewski’s model, ISR Index has no effect on financial distress.

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