Islamic Corporate Governance and Sharia Compliance on Financial Performance
- DOI
- 10.2991/978-2-38476-118-0_178How to use a DOI?
- Keywords
- Financial Performance; Islamic Corporate Governance; Sharia Compliance
- Abstract
The financial performance of the Sharia industry has increased during unfavorable economic times due to the Covid-19 pandemic. The increase in financial performance, especially in Islamic banking, shows that company management is generally running well, but the high financial performance of Islamic banking does not necessarily meet the level of Sharia compliance. Sharia compliance is the level of compliance with company operations based on Sharia principles. This study aims to examine and analyze the influence of Islamic Corporate Governance (ICG) and sharia compliance on financial performance. The population in this study is Islamic banking in Indonesia, with the category of Islamic Commercial Banks (BUS). The sample criteria are BUS that publish annual reports and Good Corporate Governance reports for 5 consecutive years 2015-2019. The analytical method used is multiple regression analysis. The results of the study show that ICG and sharia compliance from the Profit-Sharing indicator have a positive effect on financial performance. The results of the study show that sharia compliance with the Islamic Income and Equitable Distribution indicators has no effect on financial performance. This research has implications for Islamic banking to pay attention to aspects of sharia compliance in achieving company goals, so as to create corporate governance that is in accordance with Sharia principles.
- Copyright
- © 2024 The Author(s)
- Open Access
- Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.
Cite this article
TY - CONF AU - Farida AU - Muji Mranani PY - 2023 DA - 2023/10/10 TI - Islamic Corporate Governance and Sharia Compliance on Financial Performance BT - Proceedings of the 4th Borobudur International Symposium on Humanities and Social Science 2022 (BIS-HSS 2022) PB - Atlantis Press SP - 1571 EP - 1577 SN - 2352-5398 UR - https://doi.org/10.2991/978-2-38476-118-0_178 DO - 10.2991/978-2-38476-118-0_178 ID - 2023 ER -