CRITICAL STUDY OF OPTIMIZATION OF ISLAMIC CORPORATE GOVERNANCE IMPLEMENTATION TO ACHIEVE COMPANY PERFORMANCE

Guidelines for Good Corporate Governance an Islamic perspective have a broader context, do notseparate roles and responsibilities in all stakeholders actions under the auspices of Islamic sharia law.There are differences in concepts and perspectives between western perspective (Anglo Saxon andEuropean) Good Corporate Governanceand Islamic perspectives. The difference in the very basic pointof view that Good Corporate Governance is the Islamic perspective comes from tawhid, shari'ah, andthe concept of shura. Islamic Good Corporate Governance guidelines focus on the role of stakeholdersrelated to the company.The development of science that occurs in the perspective of Good Corporate Governance begins onthe basis of agency theory which states that there is a separation between ownership and managementthat has the potential to cause agency problems, ways to overcome agency problems through theimplementation of Good Corporate Governance. Implementation of guidelines for Good CorporateGovernance is an obligation for the company. This is more aimed at the existence of responsibility tothe public (public accountability) relating to the company's operational activities and it is expected thatthe company can comply with the provisions outlined in a positive law. In addition, this is related tothe level of compliance of sharia with sharia principles as described in the Qur'an, Hadith, and Ijma 'ofthe Ulama. Research related to Good Corporate Governance in the Islamic perspective with theachievement of company performance is expected to provide an overview of the Good CorporateGovernance framework that recognizes the rights of stakeholders as determined by law and encouragesactive cooperation between companies and stakeholders to create employee welfare, performance, andcorporate sustainability.Keywords: Islamic Corporate Governance, Agency Theory and Performance

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CRITICAL STUDY OF OPTIMIZATION OF ISLAMIC CORPORATE GOVERNANCE IMPLEMENTATION TO ACHIEVE COMPANY PERFORMANCE

INDONESIAN JOURNAL OF ACCOUNTING AND GOVERNANCE ◽

10.36766/ijag.v3i1.31 ◽

2020 ◽

Vol 3 (1) ◽

pp. 1-32

Author(s):

Reza Widhar Pahlevi

Keyword(s):

Corporate Governance ◽

Agency Problems ◽

Critical Study ◽

Company Performance ◽

Islamic Perspective ◽

Positive Law ◽

Good Corporate Governance ◽

The Difference ◽

Operational Activities ◽

Western Perspective

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Biaya Keagenan, GCG, dan Kinerja Perusahaan Keluarga

MBIA ◽

10.33557/mbia.v19i3.1208 ◽

2021 ◽

Vol 19 (3) ◽

pp. 331-342

Author(s):

Kusmawati Kusmawati

Keyword(s):

Corporate Governance ◽

Data Processing ◽

Agency Theory ◽

Secondary Data ◽

Agency Cost ◽

Family Firm ◽

Chi Square ◽

Good Corporate Governance ◽

Saturation Method ◽

And Performance

This research according to agency theory, especially conflict between principal and agent in family firm. The purpose of this study was to examine empiricallly differences agency cost, GCG, and performance in family firm and not family firm. proxy chosen in describing the agency cost are operational expense ratio on revenue, performance of the firm is return on asset, and top 50 biggest market cap and mid cap of public listed companies in IICD for the GCG measurement. The population used in this study is company in 100 kompas index, during the period 2017-2019. The sample collected by saturation method and secondary data obtained from a IDX.co.id database. In this study, the data collected were 28 family firm and 43 non family firm. The statistically method are used Mann Whitney U and Chi Square with using IBM SPSS 23.0 for data processing. The first result of this research showed that there are differences in agency cost and Good Corporate Governance among family with non family firm. The second result are showed that there are not difference in Return On Asset among family with non family firm. Abstrak Penelitian ini adalah penelitian tentang teori keagenan, khususnya konflik antara pemilik dan agen di perusahaan keluarga. Tujuan dari penelitian ini adalah untuk menguji secara empiris perbedaan antara biaya keagenan, GCG, dan kinerja antara perusahaan keluarga dan bukan perusahaan keluarga. Proksi yang dipilih untuk menggambarkan biaya keagenan adalah rasio beban operasi atas pendapatan, ukuran kinerja adalah laba bersih atas aset, dan perusahaan yang masuk dalam 50 perusahaan dengan market kapitatalisasi besar dan menengah untuk ukuran dari GCG. Populasi yang digunakan dalam penelitian ini adalah perusahaan yang masuk dalam index kompas 100 selama periode 2017-2019. Sampel dipilih dengan menggunakan metode sampel jenuh dan data sekunder yang digunakan adalah berasal dari database idx.co.id. dalam penelitian ini, data yang dikumpulkan terdiri dari 28 perusahaan keluarga dan 43 perusahaan non keluarga. Metode statistik yang digunakan adalah Mann Whitney U dan Chi Square dengan menggunakan SPSS IBM versi 23 untuk pengolahan datanya. Hasil penelitian menunjukkan bahwa terdapat perbedaan biaya keagenan dan GCG antara perusahaan keluarga dan perusahaan non keluarga. Hasil penelitian berikutnya menunjukkan bahwa tidak terdapat perbedaan kinerja ROA antara perusahaan keluarga dan non keluarga. Kata Kunci: Biaya Keagenan, GCG, ROA.

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The relationship between agency theory, stakeholder theory and Shariah supervisory board in Islamic banking

Humanomics ◽

10.1108/h-08-2016-0062 ◽

2017 ◽

Vol 33 (1) ◽

pp. 75-83 ◽

Cited By ~ 9

Author(s):

Sulaiman Abdullah Saif Al-Nasser Mohammed ◽

Joriah Muhammed

Keyword(s):

Corporate Governance ◽

Agency Theory ◽

Stakeholder Theory ◽

Supervisory Board ◽

Theoretical Background ◽

Islamic Banking ◽

Islamic Banks ◽

Content Type ◽

Islamic Perspective ◽

The Difference

Purpose In relation to the critical problem, this paper aims to present an understanding of the agency theory and the stakeholder theory from the perspective of the Islamic principles. Indeed, a thorough examination of the theoretical background explaining corporate governance from the Islamic perspective is necessary to conduct research analysing corporate governance in Islamic banks. Design/methodology/approach The authors followed a critical review discussion; this method takes into consideration presenting important theories and comparing those theories with Islamic perspective. Findings The authors presented important arguments on the difference between ordinary theories to explaining corporate governance and Islamic perspective. The paper browsed into whether the Shariah Supervisory Board is a fit with the agency theory by explaining the agency theory and how it differs from the Islamic banking concepts. The paper involved an analytical review on stakeholder theory and presented a critique and the rationale as to why there is ample room for the Shariah Supervisory Board to be considered a fit with the stakeholder theory, as the Shariah Supervisory Board is an independent body influencing the firm. Originality/value The paper is of important value to those conducting research in the area of governance in Islamic banks; they may find it beneficial in terms of underlining theory building their research framework.

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Does good corporate governance lead to better firm performance? Strategic lessons from a structured literature review

Corporate Ownership and Control ◽

10.22495/cocv15i4art7 ◽

2018 ◽

Vol 15 (4) ◽

pp. 73-85 ◽

Cited By ~ 3

Author(s):

Bushra Khan ◽

André Nijhof ◽

Rosalien A. Diepeveen ◽

Daniëlle A. M. Melis

Keyword(s):

Corporate Governance ◽

Meta Analysis ◽

Academic Research ◽

Company Performance ◽

Board Diversity ◽

Good Corporate Governance ◽

Moderating Factors ◽

And Performance ◽

The Relationship ◽

Ongoing Dialogue

The objective of this paper is to disclose proven relationships between good corporate governance variables and the financial and/or non-financial performance of companies based on a meta-analysis of relevant studies. A meta-analysis was performed by means of academic research published between 2006 and 2016 in the five highest-ranked academic journals according to the Association of Business Schools (ABS) ranking. The relevant academic studies were selected on the basis of the relationship between corporate governance and performance. Our study provides evidence for the correlation between five corporate governance variables (board independence, board diversity, CEO characteristics, remuneration and oversight) and company performance. Furthermore, several mediating and moderating factors influencing the relationship between corporate governance variables and company performance were identified in this meta-study. The overview of corporate governance variables and their relation to company performance serves as input for a better understanding of this relationship and subsequently the ongoing dialogue on enhancing corporate governance in practice.

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The Relationship Between Good Corporate Governance and Performance of Most Liquid Stocks in Indonesia

Research in World Economy ◽

10.5430/rwe.v11n1p137 ◽

2020 ◽

Vol 11 (1) ◽

pp. 137

Author(s):

Abdul Karim ◽

Agus Purwanto

Keyword(s):

Corporate Governance ◽

Audit Quality ◽

Stock Exchange ◽

Foreign Ownership ◽

Company Performance ◽

Positive Effects ◽

Good Corporate Governance ◽

Analysis Technique ◽

New Perspective ◽

And Performance

The purpose of this study is to analyze the influence of independent commissioners, managerial ownership, foreign ownership, debt, and audit quality on the performance of company shares included in LQ 45 on the Indonesia Stock Exchange. The research sample is LQ 45 companies that issued financial statements as much as 120 companies with analysis technique used is multiple regression with one dependent variable and five independent variables. The results showed that foreign ownership, debt and audit quality have significant and positive effects on company performance. Moreover, the insider share ownership and the composition of independent commissioners were proven to not significantly affect company performance. This finding is practically useful to expand the possibility of foreign ownership, facilitate regulation of debt and quality audit obligations to improve stock performance. This study offers a new perspective on the implementation of good corporate governance in the context of the performance of liquid stocks on the stock exchange.

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Corporate Governance and Performance of Organizations

Journal of Business and Economics ◽

10.15341/jbe(2155-7950)/05.09.2018/006 ◽

2018 ◽

Vol 9 (5) ◽

pp. 439-446

Author(s):

Hamid Ait lemqeddem ◽

◽

Mounya Tomas ◽

Keyword(s):

Corporate Governance ◽

Agency Theory ◽

Theoretical Foundation ◽

Quantitative Approach ◽

Governance Practices ◽

Deductive Method ◽

Private And Public ◽

Is Theory ◽

And Performance ◽

Do So

There is renewed interest in the need to focus on corporate governance in an environment where it is a performance imperative for all small and large organizations, private and public, beginner or established.The purpose of this study is to demonstrate the place of corporate governance practices in organizations to ensure that the board, officers, and directors take action to protect shareholder interests and all stakeholders. It is important to focus on the effect of these practices on improving performance and competitiveness. To do so, we opted for the hypothetico-deductive method with a quantitative approach. Our theoretical foundation is theory is agency theory.

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Stewardship theory: is board accountability necessary?

International Journal of Law and Management ◽

10.1108/ijlma-11-2016-0118 ◽

2017 ◽

Vol 59 (6) ◽

pp. 1292-1314 ◽

Cited By ~ 13

Author(s):

Andrew Keay

Keyword(s):

Corporate Governance ◽

Agency Theory ◽

Design Methodology ◽

Agency Problems ◽

Stewardship Theory ◽

Content Type ◽

General Terms ◽

Practical Implications

Purpose The purpose of the paper is to demonstrate that notwithstanding the fact that stewardship theory embraces things like trust of directors, their professionalism, loyalty and willingness to be concerned for the interests of others, as well as rejecting the foundations of classic agency problems that are asserted by agency theory, board accountability is as relevant to stewardship theory as it is to agency theory. Design/methodology/approach The paper applies the theory underlying board accountability in corporate governance, which is so often applied both in the corporate governance literature and in practice with agency theory in mind, to stewardship theory. Findings While the idea of accountability of boards is generally associated with an explanation and conceptualisation of the role and behaviour of directors as agents within classic agency theory, the paper demonstrates that board accountability is a necessary part of board life even if the role of directors is explained and conceptualised in terms of stewardship theory. Practical implications The paper suggests some accountability mechanisms that might be employed in a stewardship approach. Originality/value While many authors have talked in general terms about board accountability and its importance, this is the first paper that has engaged in a substantial study that links board accountability directly with stewardship theory, and to establish that accountability is necessary.

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The Effect of Good Corporate Governance and Sustainability Report on Company Performance

Journal of Advanced Research in Dynamical and Control Systems ◽

10.5373/jardcs/v12i8/20202655 ◽

2021 ◽

Vol 12 (8) ◽

pp. 494-504

Author(s):

Jun aidi ◽

Nurd iono ◽

Ahmad Rifai ◽

Icuk Rangga Bawano

Keyword(s):

Corporate Governance ◽

Board Of Directors ◽

Audit Committee ◽

Linear Regression Analysis ◽

Institutional Ownership ◽

Company Performance ◽

Good Corporate Governance ◽

Management Ownership ◽

The Board Of Directors ◽

Sustainability Report

This study examines the effect of good corporate governance and sustainability report on company performance. Good corporate governance is dependent on the size of the board of directors, the proportion of independent commissioners, the size of the audit committee, institutional ownership, management ownership. Sustainability report is facilitated by economic, environmental and social aspect as well as disclosure index. While Company performance is generated by Return on Assets (ROA). This research was conducted on companies listed on the Indonesia Stock Exchange between 2014-2018. The purposive sampling technique was used. Hypothesis testing was done by linear regression analysis. The results of testing the first variable showed that institutional ownership affects ROA and has a negative relationship direction. While the size of the board of directors, the proportion of independent directors, the size of the audit committee, and management ownership have no effect on ROA. However, the result of the second variable showed that the disclosure of economic aspects affects ROA and has a positive relationship direction. While disclosure of environmental and social aspects does not affect ROA.

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ANALYSIS OF IMPLEMENTATION OF THE GOOD CORPORATE GOVERNANCE PT. BANK BNI SYARIAH BRANCH OF TASIKMALAYA

Al-Infaq Jurnal Ekonomi Islam ◽

10.32507/ajei.v11i1.479 ◽

2020 ◽

Vol 11 (1) ◽

pp. 83

Author(s):

Setiawan Bin Lahuri ◽

Vina Fithriana Wibisono

Keyword(s):

Corporate Governance ◽

Content Analysis ◽

Data Collection ◽

Field Research ◽

Secondary Data ◽

Inductive Method ◽

Islamic Banks ◽

Islamic Perspective ◽

Good Corporate Governance ◽

Personal Character

PT. Bank BNI Syariah is one of the best Islamic banks, which obtained the best award as the most efficient bank and first ranked in the category of best good corporate governance report. So, this study aims to explore the extent of implementation of good corporate governance in PT. Bank Syariah Branch Tasikmalaya. This study is field research using the inductive method and content analysis approach. Data collection is using primary and secondary data through observations, interviews, and documentation. The results indicate that PT. Bank Syariah Branch Tasikmalaya has implemented good corporate governance principles by well according to the Islamic perspective. Described about it that bank has implemented “anti-graft” accordance with al-Amanah}-al-Jama>’ah}-al-Hasanah} as a slogan in doing work; al-Tawhi>d and al-Rid}a as the basis for forming personal character; every Dhuhur and Ashar prayer, the office is temporarily closed; Tarhib Ramadhan as routine program every June 19 by holding an MHQ competition.

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MENILAI TINGKAT KESEHATAN BANK DENGAN ANALISIS METODE RISK PROFILE, GOOD CORPORATE GOVERNANCE, EARNINGS, CAPITAL PADA BANK SYARIAH DI INDONESIA

Islamic Banking : Jurnal Pemikiran dan Pengembangan Perbankan Syariah ◽

10.36908/isbank.v6i1.135 ◽

2020 ◽

Vol 6 (1) ◽

pp. 139-160

Author(s):

Hendra Galuh Febrianto ◽

Amalia Indah Fitriana

Keyword(s):

Corporate Governance ◽

Optimal Level ◽

Risk Profile ◽

Business Strategies ◽

Islamic Banking ◽

Risk Profiles ◽

Good Corporate Governance ◽

And Performance ◽

Financial Research ◽

Bank Soundness

ABSTRACT In the banking world of soundness, banks are very important for the formation of trust. Trust and loyalty to banks is a very helpful factor and makes it easier for bank management to develop good business strategies. Bank Soundness Levels are results issued by banks which are carried out on bank risk and performance (Bank Indonesia Regulation Number: 13/1 / PBI / 2011). If more than conventional banking with Islamic banking, conventional banking finance is better than Islamic banking. This is blessed with poor sharia banking (corporate governance) management. In order to be able to carry out its functions properly, banks must have sufficient capital, ensure the quality of their assets properly, be well managed and managed based on the principle of prudence, generate sufficient profits to maintain an increase, and support liquidity so that it can be adjusted to their needs. Therefore banks are required to be able to achieve and maintain a good and optimal level of performance, because the level of bank performance can increase the level of trust and loyalty needed by the wider community to use the products, services and financial activities of the bank. The purpose of this study is for advanced financial research with analysis of Risk Profiles (Risk Profiles), Good Corporate Governance (GCG), Profitability (Income), and Capital (Capital) which is hereinafter abbreviated as RGEC with the final aim of research for the needs of Sharia banking management in accordance with the latest Bank Indonesia and OJK regulations. This type of research uses descriptive research proposed in the RGEC analysis (Risk Profile, Good Corporate Governance, Income, and Capital) at Islamic Banks in Indonesia. from 2013 to 2017. Keywords: Risk Profile, Good Corporate Governance, Income, Capital, Bank Soundness ABSTRAK Dalam dunia perbankan tingkat kesehatan bank sangat penting bagi pembentukan kepercayaan. Kepercayaan dan loyalitas nasabah terhadap bank merupakan faktor yang sangat membantu dan mempermudah pihak manajemen bank untuk menyusun strategi bisnis yang baik. Tingkat Kesehatan Bank adalah hasil penilaian kondisi bank yang dilakukan terhadap risiko dan kinerja bank (Peraturan Bank Indonesia Nomor: 13/1/PBI/2011). Jika dibanding antara perbankan konvensional dengan perbankan syariah, kinerja keuangan perbankan konvensional lebih baik daripada perbankan syariah. Hal ini dikarena tatakelola (good corporate governance) perbankan syariah yang masih buruk. Agar dapat menjalankan fungsinya dengan baik, bank harus mempunyai modal yang cukup, menjaga kualitas asetnya dengan baik, dikelola dengan baik dan dioperasikan berdasarkan prinsip kehati-hatian, menghasilkan keuntungan yang cukup untuk mempertahankan kelangsungan usahanya, serta memelihara likuiditasnya sehingga dapat memenuhi kewajibannya. Oleh karena itu bank dituntut untuk bisa mencapai dan mempertahankan tingkat kinerja yang baik dan optimal, karena tingkat kinerja bank yang baik dapat meningkatkan kepercayaan dan loyalitas nasabah maupun masyarakat luas untuk menggunakan produk, jasa dan aktivitas keuangan dari bank tersebut. Tujuan penelitian ini adalah untuk menilai tingkat kesehatan keuangan dengan analisis Profil Risiko (Risk Profile), Good Corporate Governance (GCG), Rentabilitas (Earnings), dan Permodalan (Capital) yang selanjutnya disingkat RGEC dengan tujuan akhir merekomendasikan kebijakan untuk memperbaiki manajemen perbankan Syariah yang sesuai peraturan Bank Indonesia dan OJK yang terbaru. Jenis penelitian ini menggunakan penelitian deskriptif yang berfokus pada analisis RGEC (Risk Profile, Good Corporate Governance, Earnings, and Capital) pada Bank Syariah di Indonesia. dari tahun 2013 sampai 2017. Kata kunci: Risk Profile, Good Corporate Governance, Earnings, Capital, Tingkat Kesehatan Bank

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