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Abstract

Purpose – This paper examines how effective governance influences Islamic social finance management, using mosques in Yogyakarta as a case study during and after the Covid-19 crisis.
Methodology – This study employs a survey with a sample of 360 mosques in Yogyakarta using a quantitative approach with ordinary least squares (OLS) and logit regression models.
Findings – The findings indicate that an increase in the effective governance index score has a positive and significant effect on the fundraising index and zakat distribution, resulting in increases of 0.14 standard deviations and 6.5 percent, respectively. Furthermore, effective governance had a positive and significant effect on the probability of mosques having a financial management system, with a marginal effect of 7.3 poin percentage.
Implication – The government should offer financial management training and support the digitalization of reporting systems as a means of strengthening mosque governance.
Limitations – First, the data used were cross-sectional, which may restrict researchers' ability to identify long-term causal relationships. Second, despite efforts to address endogeneity using several variables, the instruments are theoretically valid but statistically insignificant.
Original – This study is the first to present micro-level empirical evidence from mosques in Yogyakarta, an area that has rarely been explored in Islamic financial governance literature. Furthermore, we used a multidimensional effective governance index that ranges from 0 to 1. The index was then standardized using a z-score to ensure comparability and balance across mosques.

Keywords

Mosque Effective governance Islamic social financial management

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Copyright (c) 2026 Prayudi Ibrahim Nasution, Wida Reza Hardiyanti, Novat Pugo Sambodo, Eka Armas Pailis

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How to Cite
Nasution, P. I., Hardiyanti, W. R., Sambodo, N. P., & Pailis, E. A. (2026). Does effective governance matter for Islamic social finance? Evidence from mosques in Yogyakarta. Jurnal Ekonomi & Keuangan Islam, 12(1), 1–21. https://doi.org/10.20885/JEKI.vol12.iss1.art1
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