MULTIPLE DIRECTORSHIPS OF SHARI’AH COMMITTEES IN ISLAMIC BANKS: DO INTERNAL AUDIT AND FINANCIAL PERFORMANCE MATTER?

This study aims to determine the influence of the Sharia Supervisory Board and the Board of Commissioners on the Financial Performance of Islamic Banks in Indonesia. This study used secondary data from 12 banks.The sampling technique used is the purposive sampling technique. The method of data analysis used is multiple linear regression.The results partially show that the sharia supervisory board and board of commissioners positively and significantly influence the financial performance of Islamic banks in Indonesia. Simultaneously,the board of commissioners and the sharia supervisory board positively and significantly influence the financial performance of Islamic bank

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PENGARUH PENGUNGKAPAN IDENTITAS ETIS ISLAM, AGENCY COST DAN INTELLECTUAL CAPITAL TERHADAP KINERJA KEUANGAN (STUDI PADA BANK UMUM SYARIAH YANG TERDAFTAR DI OTORITAS JASA KEUANGAN PERIODE 2016-2018)

Jurnal Akuntansi dan Keuangan ◽

10.29103/jak.v9i1.3726 ◽

2021 ◽

Vol 9 (1) ◽

pp. 57

Author(s):

Mursidah Mursidah ◽

Yunina Yunina ◽

Meutia Zahara

Keyword(s):

Financial Performance ◽

Commercial Bank ◽

Intellectual Capital ◽

Sampling Method ◽

Annual Report ◽

Secondary Data ◽

Agency Cost ◽

Islamic Banks ◽

Ethical Identity ◽

Identity Disclosure

Abstract: This study aimed to examine the influence of the Islamic ethical indentity disclosure, agency cost, and intellectual capital to the financial performance proxied by return on asset (ROA) in Islamic commercial bank in 2016-2018. Secondary data were used from annual report were published on the website etch Islamic bank between 2016-2018. The purposive sampling method using in this research, so there are theerten Islamic banks are object of research. The analytical method used is multiple linier regresstion analysis using the SPSS 20 softwer program. The results of this study shows that partial of the Islamic ethical identity disclosure have not effect on the financial performance proxied by return on asset (ROA) in Islamic commercial bank, the agency cost have effect negative on the financial performance proxied by return on asset (ROA) in Islamic commercial bank, and intellectual capital have effect positif on the financial performance proxied by return on asset (ROA) in Islamic commercial bank in 2016-2018. Keywords: Islamic ethical identity disclosure, agency cost intellectual capital, financial performance and ROA.

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AAOIFI governance standards: Sharia disclosure and financial performance for Islamic banks

Journal of Governance and Regulation ◽

10.22495/jgr_v8_i1_p2 ◽

2019 ◽

Vol 8 (1) ◽

pp. 19-37 ◽

Cited By ~ 3

Author(s):

Hesham Albarrak ◽

Sherif El-Halaby

Keyword(s):

Financial Performance ◽

Financial Reporting ◽

Islamic Law ◽

Supervisory Board ◽

Positive Influence ◽

Economic Consequences ◽

Annual Reports ◽

Primary Study ◽

Islamic Banks ◽

The Impact

The uniqueness of Islamic banks (IBs) is shown through compliance with Islamic law (Sharia) which is approved through Sharia Supervisory Board (SSB) and presented for stakeholders by Sharia Supervisory Board Report (SSBR). This study seeks to achieve three main objectives as follows: (1) it identifies the degree of IBs’ transparency in compliance with Sharia and their commitment with the governance standards that issued by Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI); (2) it aims to measure the impact of adoption AAOIFI on the degree of Sharia disclosure; and (3) it seeks to test the economic consequences of Sharia disclosure based on its impact on financial performance. We analyse content of annual reports and websites of 120 IBs across 20 different countries for year 2016. Regression analysis shows compliance level for Sharia disclosure based on our index for SSBR is 53% with higher level compliance for IBs that apply AAOIFI standards comparing with banks that adopting International Financial Reporting Standards (IFRS). Therefore, adopting AAOIFI has a positive effect on enhancing the degree of Sharia disclosure. Moreover, Sharia compliance has a positive influence on financial performance based on both Returns on Assets (ROA) and Tobin’s Q as a robustness test. This study adds value to Islamic accounting literature by being a primary study. There is a lack of research on the topic and this paper measures the consequences of Sharia disclosure over the financial performance of IBs as well as the role of Islamic standards (AAOIFI) in enhancing the image of Islamic banks through supporting their compliance with Sharia.

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Ownership Structure and Financial Performance of Islamic Banks in Pakistan, Does Bank Ownership Structure Matter?

10.7176/rjfa/10-5-04 ◽

2019 ◽

Cited By ~ 2

Keyword(s):

Financial Performance ◽

Ownership Structure ◽

Islamic Banks ◽

Bank Ownership

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Peran Islamic Corporate Social Responsibility dalam Memoderasi Pengaruh Zakat Terhadap Kinerja Bank Umum Syariah

JURNAL AKUNTANSI DAN KEUANGAN ISLAM ◽

10.35836/jakis.v9i1.241 ◽

2021 ◽

Vol 9 (1) ◽

pp. 73-89

Author(s):

Sartini Wardiwiyono ◽

◽

Arty Fitria Jayanti ◽

Keyword(s):

Corporate Social Responsibility ◽

Social Responsibility ◽

Financial Performance ◽

Negative Impact ◽

Positive Impact ◽

Annual Reports ◽

Observation Data ◽

Islamic Banks ◽

Corporate Social

The aim of this study is to investigate the role of Islamic Corporate Social Responsibility in moderating the effect of zakat on Islamic commercial banks’ financial performance. Out of 13 Islamic commercial bank listed by Otoritas Jasa Keuangan from 2012 to 2017, there were only five banks reporting Statement of Zakat Fund Sources and Disbursements. Hence, the final samples of this study consist of 30 observation data. Secondary data collected from 30 annual reports were gathered through documentation. This study utilizes moderated regression analysis to test three research hypotheses. The results shows several findings. Firstly, the amount of corporate zakat being reported in the Statement of Zakat Fund Sources and Disbursements has positive impact on Islamic banks’ financial performance. Secondly, Islamic CSR as measured by Islamic reporting index developed by Belal et al. (2015) has negative impact on Islamic Banks’ financial performance. Thirdly, the role of Islamic CSR in moderating the effect of zakat on financial performance was confirmed.

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Impact of the Ownership Structure on the Financial Performance of Banks: Comparative Study between Conventional and Islamic Banks

International Journal of Accounting & Finance Review ◽

10.46281/ijafr.v4i2.442 ◽

2019 ◽

Vol 4 (2) ◽

pp. 50-63

Author(s):

Achraf Haddad ◽

Anis El Ammari ◽

Abdelfattah Bouri

Keyword(s):

Financial Performance ◽

Ownership Structure ◽

Least Squares Method ◽

Conflicts Of Interest ◽

Positive Impact ◽

Ordinary Least Squares ◽

Performance Measure ◽

Islamic Banks ◽

Two Samples ◽

The Impact

According to the literature of corporate governance, ownership structure is advanced as a non-dissociable mechanism of control intended to follow the stakeholders and especially used by shareholders to monitor the conflicts of interest and the opportunistic behavior of managers. Several previous studies have focused on the impact of ownership structure on financial performance separately in conventional or in Islamic banks. However, the comparative studies between these two impacts are non-existent. In this research, we compared the impacts of this governance mechanism on the financial performance in the two types of banks by using the Ordinary Least Squares method. Data relating to financial performance and ownership structure of banks come from 16 countries. Two samples were collected: the first one included 63 conventional banks, whereas the second one integrated 63 Islamic banks whose data are available over the period (2010-2018). Panel results showed that partial effect of each determinant of ownership structure on each measure of financial performance varied from one banks’ type to another and from one performance measure to another. Besides, the reconciliation of similar models revealed many differences between the same impacts’ signs. Therefore, we concluded that in both banks’ types the ownership structure has a positive impact on the financial performance. While, the negative part of the same impact is less significant in Islamic banks. JEL Classification: F33, G20, G21, G24, G30.

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ISLAMIC BANKING PERFORMANCE MEASUREMENT: A CONCEPTUAL REVIEW OF TWO DECADES

International Journal of Islamic Banking and Finance Research ◽

10.46281/ijibfr.v5i1.1056 ◽

2021 ◽

Vol 5 (1) ◽

pp. 16-33

Author(s):

Elyanti Rosmanidar ◽

Abu Azam Al Hadi ◽

Muhamad Ahsan

Keyword(s):

Financial Performance ◽

Intellectual Capital ◽

Social Performance ◽

Meta Analysis ◽

Jel Classification ◽

Research Trend ◽

Islamic Banking ◽

Islamic Banks ◽

The Past ◽

Conventional Banks

This article aims to provide an overview of the development of research on the measurement of Islamic banking performance over the past 20 years from 89 selected papers with Scopus-indexed journals ranked Q4 to Q1 or accredited with Sinta 2 to Sinta 1. This study used a qual-quantitative meta-analysis approach using the Mendeley citation application. The distribution of the topic and the depth of research in paper samples based on keywords in publications were analyzed using the VOSviewer application. The results of the analysis showed that the research trend of Islamic banking performance in reputable journals is increasing in recent years. Most of the studies performed in the last two decades have focused on the practice and corporate governance of Islamic banks and comparisons between Islamic and conventional banks based on financial performance ratios and aspect of maqasid al-Shariah; Only a few studies that discuss efficiency, social performance on Islamic banks, regulation, intellectual capital and stability of the financial performance of Islamic banks were found. The further discussion is an empirical exposure without theoretical exploration or analysis which is supposed to become the direction of banking research in the future. JEL Classification Codes: G21, L25, P17, P47.

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Financial Performance Mediation in the Influence of Islamic Corporate Governance Disclosure on the Islamic Social Reporting

Indonesian Journal of Sustainability Accounting and Management ◽

10.28992/ijsam.v3i1.77 ◽

2019 ◽

Vol 3 (1) ◽

pp. 75

Author(s):

Ichsan Setiyo Budi ◽

Rahmawati Rahmawati ◽

Falikhatun Falikhatun ◽

Muthmainah Muthmainah ◽

Ardi Gunardi

Keyword(s):

Corporate Governance ◽

Financial Performance ◽

Social Role ◽

Secondary Data ◽

Social Reporting ◽

Islamic Banking ◽

Islamic Banks ◽

The Social ◽

Annual Reporting ◽

Report Data

The results of the research on the social role of Islamic banks show inconsistency both domestically and abroad; this is the basis for conducting this research to re-explain the Islamic Corporate Governance (ICG) and Islamic Social Reporting (ISR) relationship, models. This study aims to examine the indirect effect of ICG disclosure on ISR disclosure with financial performance as a mediating variable in Islamic Banking in Indonesia. This study uses secondary data with annual report data sources and financial statements on Islamic banking in Indonesia. They are testing this study using stepwise regression analysis with data for the annual reporting period of 2011 through 2014. The result that financial performance mediates the effect of disclosure of ICG on ISR; this shows that proper management of Islamic banks will produce high financial performance so that they can carry out their social roles well too. The contribution of this study is to develop a new model of the part of financial performance mediating the effect of ICG disclosure on ISR so that it is beneficial for the development of science.

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