Proceedings of the International Conference on Sustainable Innovation Track Accounting and Management Sciences (ICOSIAMS 2021)

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The Preliminary Investigation of How Barakah Works

Authors
Saiful Anwar1, *, Mawar Suryani2
1Postgraduate Programme on Islamic Finance, Institut Teknologi dan Bisnis Ahmad Dahlan Jakarta, Indonesia
2Department of accounting, Institut Teknologi dan Bisnis Ahmad Dahlan Jakarta, Indonesia
*Corresponding author. Email: olieanwar@gmail.com
Corresponding Author
Saiful Anwar
Available Online 13 January 2022.
DOI
10.2991/aebmr.k.211225.013How to use a DOI?
Keywords
Barakah; Islamic Bank; Corporate Social Responsibility; ZAKAT
Abstract

This study aims to examine the effect of corporate social responsibility and ZAKAT on the profitability of Islamic Commercial Banks as a proxy to understand how barakah works. Continuing the previous studies on the meaning of barakah qualitatively, this study aims to look at the works of barakah quantitatively. SEM-PLS under WarpPLS 6.0 software is used to investigate how barakah functions. As a result, there are two exogenous variables and one moderating variable, which are corporate social responsibility (CSR), ZAKAT, and the size of the organization (UP). Meanwhile, as a proxy for the Islamic bank’s profitability, the return on asset (ROA) is used as an endogenous variable. Furthermore, this research employs a purposive sampling technique, employing 25 Indonesian Islamic Commercial Banks samples from 2013 to 2017. The findings reveal that barakah functions by enhancing assets and improving the healthiness of NPF to simultaneously repair and increase the number of assets while also ensuring asset growth sustainability through healthy profit creation. This paper is a comprehensive investigation of the intricate concept of barakah utilizing quantitative methodologies using Indonesian Islamic banks as a case study; however, by utilizing more significant variables, it could be expanded to a wider scale. Before setting any other goals as derivative works, Islamic banks in Indonesia should set the aim of ZAKAT to be paid as groundwork. It will allow them to generate a healthy profit, ensuring long-term expansion. Unlike earlier research, this study aims to be the first to quantitatively investigate the works of barakah in the field of Islamic banking.

Copyright
© 2022 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

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Volume Title
Proceedings of the International Conference on Sustainable Innovation Track Accounting and Management Sciences (ICOSIAMS 2021)
Series
Advances in Economics, Business and Management Research
Publication Date
13 January 2022
ISBN
978-94-6239-504-6
ISSN
2352-5428
DOI
10.2991/aebmr.k.211225.013How to use a DOI?
Copyright
© 2022 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

Cite this article

risenwbib
TY  - CONF
AU  - Saiful Anwar
AU  - Mawar Suryani
PY  - 2022
DA  - 2022/01/13
TI  - The Preliminary Investigation of How Barakah Works
BT  - Proceedings of the International Conference on Sustainable Innovation Track Accounting and Management Sciences (ICOSIAMS 2021)
PB  - Atlantis Press
SP  - 79
EP  - 85
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.211225.013
DO  - 10.2991/aebmr.k.211225.013
ID  - Anwar2022
ER  -