Sharia Compliance and Islamic Social Reporting on Financial Performance of the Indonesian Sharia Banks

DOI

10.2991/agc-18.2019.96How to use a DOI?

Keywords

Sharia Compliance, Islamic Corporate Governance, Islamic Social Reporting, Financial Performance, Firm

Abstract

this research aims to determine and analyze the effect of Sharia Compliance (Islamic Income Ratio, Profit Sharing Ratio, Zakat performance ratio), Disclosure of Islamic Corporate Governance (Sharia Governance, General Governance) and Islamic Social Reporting to financial performance with firm size as a moderating variable. The population of this study is the sharia bank recorded in the Financial Services Authority of 2013-2017. The sample selection method uses census, and the number of samples used is 13 sample data. To analyze the data, thus study uses multiple linear regression and test of absolute difference of moderating variable with 5% significance level. The result of research shows that Sharia Compliance with Islamic Income Ratio indicator has no significant effect on financial performance, while Sharia Compliance with Profit Sharing Ratio indicator has significant positive effect and Zakat performance ratio has significant negative effect to financial performance. Disclosure of Islamic Corporate Governance with Sharia Governance indicator has significant negative effect and Islamic Corporate Governance with General Governance indicator has a significant positive effect to financial performance of Sharia Commercial Bank in Indonesia. Islamic Social Reporting has a significant negative effect on the financial performance of Sharia Commercial Banks in Indonesia. Firm size is found to moderate the effects of Sharia Compliance, Islamic Corporate Governance, Islamic Social Reporting on the financial performance of Sharia Commercial Bank in Indonesia.

Copyright

© 2018, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Ananda Anugrah Nasution
AU  - Ade Fatma Lubis
AU  - Khaira Amalia Fachrudin
PY  - 2019/01
DA  - 2019/01
TI  - Sharia Compliance and Islamic Social Reporting on Financial Performance of the Indonesian Sharia Banks
BT  - Proceedings of the 1st Aceh Global Conference (AGC 2018)
PB  - Atlantis Press
SP  - 640
EP  - 644
SN  - 2352-5398
UR  - https://doi.org/10.2991/agc-18.2019.96
DO  - 10.2991/agc-18.2019.96
ID  - Nasution2019/01
ER  -