Article Sidebar

Download
Full text PDF
Statistic
Read Counter : 375 Download : 404

Downloads

Download data is not yet available.

Main Article Content

Abstract

Purpose – The present study examines the impact of Islamic corporate governance and social responsibility on financial performance.
Methodology – The study was designed with a quantitative approach. Purposive sampling was used in this study. Data were garnered through panel data from annual reports on Islamic banking in Indonesia and Malaysia from 2018 to 2020. The data were analyzed employing the Path Analysis.
Findings – Study findings demonstrate that Islamic social responsibility and corporate governance did not significantly impact financial performance. Additionally, disclosing its Islamic ethical identity, Islamic corporate governance had a substantial impact on financial performance. Islamic social responsibility, however, had no impact on financial performance when Islamic ethical identity was disclosed.
Implication – The findings offer empirical insights for managing Islamic commercial banks in Indonesia and Malaysia to elevate the application of Islamic corporate governance and social responsibility. This transparently demonstrates the quality of governance and social responsibility of Islamic banking with the disclosure of Islamic ethical identity following the standards applied by Islamic banking affecting stakeholder satisfaction.
Originality – This research contributes significantly to the realm of Islamic banking management. It examines the level of stakeholder satisfaction through the enactment of Islamic corporate governance as a form of supervision of management performance, Islamic social responsibility as a form of corporate concern for the surrounding environment and Islamic ethical identity disclosure to promote the image of Islamic banking.

Keywords

Financial performance Islamic corporate governance Islamic social responsibility Islamic ethical identity disclosure

Article Details

License

Copyright (c) 2023 Ina Mutmainah, Annisa Apriliantika

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Authors who publish with this journal agree to the following terms:

  1. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution ShareAlike License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
  2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
  3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).

Author Biography

Annisa Apriliantika, Accounting Study Program, Faculty of Economics and Business, Universitas Pekalongan, Pekalongan, Indonesia

 

 

How to Cite
Mutmainah, I., & Apriliantika, A. (2023). The mediating effect of Islamic ethical identity disclosure on financial performance. Asian Journal of Islamic Management (AJIM), 5(1), 69–82. https://doi.org/10.20885/AJIM.vol5.iss1.art5
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX

References

  1. Abu Zayyad, H. M., Obeidat, Z. M., Alshurideh, M. T., Abuhashesh, M., Maqableh, M., & Masa’deh, R. (2021). Corporate social responsibility and patronage intentions: The mediating effect of brand credibility. Journal of Marketing Communications, 27(5), 510–533. https://doi.org/10.1080/13527266.2020.1728565
  2. Al-Homaidi, E. A., Tabash, M. I., & Ahmad, A. (2020a). The profitability of Islamic banks and voluntary disclosure: Empirical insights from Yemen. Cogent Economics and Finance, 8(1). https://doi.org/10.1080/23322039.2020.1778406
  3. Al-Homaidi, E. A., Tabash, M. I., & Ahmad, A. (2020b). The profitability of Islamic banks and voluntary disclosure: Empirical insights from Yemen. Cogent Economics and Finance, 8(1), 1–22. https://doi.org/10.1080/23322039.2020.1778406
  4. Alhammadi, S., Alotaibi, K. O., & Hakam, D. F. (2020). Analyzing Islamic banking ethical performance from Maqāṣid al-Sharī‘ah perspective: Evidence from Indonesia. Journal of Sustainable Finance and Investment, 12(4), 1–23. https://doi.org/10.1080/20430795.2020.1848179
  5. Arifin, J., & Wardani, E. A. (2016). Islamic corporate social responsibility disclosure, reputasi, dan kinerja keuangan: Studi pada bank syariah di Indonesia. Jurnal Akuntansi & Auditing Indonesia, 20(1), 1–10. https://doi.org/http://dx.doi.org/10.20885/jaai.vol20.iss1.art4
  6. Ariyanto, T. (2014). Analisis pengaruh pengungkapan identitas etis Islam terhadap kinerja keuangan bank syariah di Asia. Jurnal Akuntansi dan Keuangan, 1(1), 98–110. https://journal.peradaban.ac.id/index.php/jak/article/view/247/198
  7. Arshad, R., Othman, S., & Othman, R. (2012). Islamic corporate social responsibility, corporate reputation and performance. Proceedings of World Academy of Science, Engineering, and Technology, 6(4), 643–647. http://search.proquest.com/docview/1349445808?accountid=26646
  8. Asrori. (2014). Implementasi Islamic corporate governance dan implikasinya terhadap kinerja bank syariah. Jurnal Dinamika Akuntansi, 6(1), 90–102. Retrieved from http://journal.unnes.ac.id/nju/index.php/jda
  9. Budi, I. S. (2021). The mediation role of productivity in the effect of Islamic corporate governance on Islamic corporate social responsibility disclosure. Journal of Accounting and Investment, 22(2), 254–275. https://doi.org/10.18196/jai.v22i2.10773
  10. Cahyaningtyas, E., & Canggih, C. (2020). Islamic corporate responsibility dan kinerja keuangan pada bank umum syariah di Indonesia. Jurnal Ekonomika dan Bisnis Islam, 3(2), 72–81. https://doi.org/10.26740/jekobi.v3n2.p72-81
  11. Gunardi, A., Herwany, A., Febrian, E., & Anwar, M. (2021). Research on Islamic corporate social responsibility and Islamic bank disclosures. Journal of Sustainable Finance and Investment, 12(4), 1–22. https://doi.org/10.1080/20430795.2021.1874211
  12. Haniffa, R., & Hudaib, M. (2007). Exploring the ethical identity of Islamic banks via communication in annual reports. Journal of Business Ethics, 76(1), 97–116. https://doi.org/10.1007/s10551-006-9272-5
  13. Khairiyani. (2020). Islamic corporate social responsibility terhadap kinerja keuangan dan nilai perusahaan. Jurnal Riset Akuntansi dan Keuangan, 8(2), 279–290. https://doi.org/10.17509/jrak.v8i2.21577
  14. Khairiyani, & Mubyantoro, N. (2019). Does Islamic corporate social responsibility improve financial performance? Maqdis : Jurnal Kajian Ekonomi Islam, 4(2), 205. https://doi.org/10.15548/maqdis.v4i2.259
  15. Mallin, C., Farag, H., & Ow-Yong, K. (2014). Corporate social responsibility and financial performance in Islamic banks. Journal of Economic Behavior and Organization, 103. https://doi.org/10.1016/j.jebo.2014.03.001
  16. Mardiani, L., Yadiati, W., & Jaenudin, E. (2019). Islamic corporate governance dan kinerja keuangan unit usaha syariah (UUS) Periode 2013-2017. Jurnal Akuntansi : Kajian Ilmiah Akuntansi (JAK), 6(2), 128-142. https://doi.org/10.30656/jak.v6i2.1411
  17. Marka, N., & Serly, V. (2020). Pengaruh pengungkapan identitas etika Islam terhadap kinerja keuangan perbankan syariah di Indonesia. Jurnal Eksplorasi Akuntansi, 2(2), 2861–2872. https://doi.org/10.24036/jea.v2i2.254
  18. Myers, S. C., & Majluf, N. S. (1984). Corporate financing and investment decisions when firms have information the investors do not have. Journal of Financial Economics, 13(2), 187-221. https://doi.org/10.1016/0304-405X(84)90023-0
  19. Rahman, R. A., Danbatta, B. L., & Saimi, N. S. B. (2014). Corporate ethical identity disclosures: The perceived, the publicized, and the applied in Islamic banks. International Journal of Trade, Economics and Finance, 5(2), 199–203. https://doi.org/10.7763/ijtef.2014.v5.371
  20. Rahman, R. A., Saimi, N. S., & Danbatta, B. L. (2016). Determinants of ethical identity disclosure in Islamic banks: An analysis of practices in Bahrain and Malaysia. Jurnal Pengurusan, 46, 13–22. https://doi.org/10.17576/pengurusan-2016-46-02
  21. Ridwan, R., & Mayapada, A. G. (2020). Does sharia governance influence corporate social responsibility disclosure in Indonesian Islamic banks? Journal of Sustainable Finance and Investment, 12(2), 1–20. https://doi.org/10.1080/20430795.2020.1749819
  22. Setiabudhi, H., Pramuka, B. A., & Ramadhanti, W. (2020). Analisis perbandingan pengungkapan Islamic ethical identity perbankan syariah di Indonesia dan Malaysia. Jurnal Ekonomi, Bisnis, dan Akuntansi (JEBA), 22(1), 69–77. https://doi.org/10.32424/jeba.v22i1.1569
  23. Srimindarti. (2006). Balanced Scorecard sebagai alternatif untuk mengukur kinerja. Semarang: STIE Stikubank.
  24. Stubben, S. R., & Welch, K. T. (2020). Evidence on the use and efficacy of internal whistleblowing systems. Journal of Accounting Research, 58(2), 473–518. https://doi.org/10.1111/1475-679X.12303
  25. Sumiyati, S., & Vebtasvili, V. (2021). Ethical identity index and financial performance of Islamic banks in Asia. Li Falah: Jurnal Studi Ekonomi dan Bisnis Islam, 6(1), 1-14. https://doi.org/10.31332/lifalah.v6i1.2482
  26. Sutapa, S., & Hanafi, R. (2019). Dampak Islamic corporate governance, Islamic social reporting pada kinerja keuangan bank Syariah di Indonesia. Jurnal Akuntansi Indonesia, 8(2), 155-165. https://doi.org/10.30659/jai.8.2.155-165
  27. Suwardjono. 2006. Teori akuntansi perekayasaan pelaporan keuangan (3rd ed.). Yogyakarta: BPFE.
  28. Tasnia, M., Syed Jafaar Alhabshi, S. M., & Rosman, R. (2021). Corporate social responsibility and Islamic and conventional banks performance: A systematic review and future research agenda. Journal of Sustainable Finance and Investment, 0(0), 1–21. https://doi.org/10.1080/20430795.2021.1922063
  29. Triantoro, H. D., Utami, I., & Joseph, C. (2020). Whistleblowing system, Machiavellian personality, fraud intention: An experimental study. Journal of Financial Crime, 27(1), 202–216. https://doi.org/10.1108/JFC-01-2019-0003
  30. Zaki, A., Sholihin, M., & Barokah, Z. (2014). The association of Islamic bank ethical identity and financial performance: Evidence from Asia. Asian Journal of Business Ethics, 3(2), 97–110. https://doi.org/10.1007/s13520-014-0034-7
  31. Zubairu, U., Sakariyau, O., & Dauda, C. (2012). Evaluation of social reporting practices of Islamic banks in Saudi Arabia. EJBO : Electronic Journal of Business Ethics and Organizational Studies, 17(1), 41–50. https://jyx.jyu.fi/handle/123456789/39892