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
Article Details
Copyright (c) 2023 Ina Mutmainah, Annisa Apriliantika
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:
- 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.
- 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.
- 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).
References
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- Srimindarti. (2006). Balanced Scorecard sebagai alternatif untuk mengukur kinerja. Semarang: STIE Stikubank.
- 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
- 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
- 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
- Suwardjono. 2006. Teori akuntansi perekayasaan pelaporan keuangan (3rd ed.). Yogyakarta: BPFE.
- 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
- 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
- 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
- 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
References
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
Srimindarti. (2006). Balanced Scorecard sebagai alternatif untuk mengukur kinerja. Semarang: STIE Stikubank.
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
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
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
Suwardjono. 2006. Teori akuntansi perekayasaan pelaporan keuangan (3rd ed.). Yogyakarta: BPFE.
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
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
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
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