Main Article Content
Abstract
Equity financing plays an important role in mobilizing financing in the real sector. The core business of sharia banking is based on the real sector, but the financing portion in sharia banking is still dominated by debt financing. This study aims to analyze the factors that affect equity financing in General Sharia Bank (BUS) and Sharia Business Unit (SBU) in Indonesia. This study uses Error Correction Model. The results show that in the long-term model of Third Party Fund (DPK), Finance to Deposit Ratio (FDR), Non-Performing Financing (NPF), Inflation and Interest Rates Credit of Conventional Bank (SBK) has a significant positive effect on equity financing. BOPO variables (Operating Cost Ratio to the Operating Income) and Return on Assets (ROA) have a positive but not significant effect on equity financing. The DPK and FDR variables have a positive and significant effect on equity financing on the short-term model.
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References
- Ariff, M., & Iqbal, M. (2011). The foundations of Islamic banking: Theory, practice and education. United Kingdom: Edward Elgal Publishing limited.
- Chong, B. S., & Liu, M. H. (2009). Islamic banking: Interest-free or interest-based? Pacific Basin Finance Journal, 17(1), 125–144. https://doi.org/10.1016/j.pacfin.2007.12.003
- Financial Service Authority. (2016). Sharia Banking Statistics. Retrieved from http://www.ojk.go.id
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- Moussa, M. A. Ben, & Chedia, H. (2016). Determinants of bank lending: Case of Tunisia. International Journal of Finance and Accounting, 5(1), 27–36. https://doi.org/10.5923/j.ijfa.20160501.04
- Othman, N., Maji, M. A., & Rahman, A. A. (2015). Equity-based financing and Islamic banks efficiency: stochastic frontier analysis. In the 2nd International Conference on Management and Muamalah. Bangi: Faculty of Management and Muamalah, International Islamic University College Selangor.
- Shaikh, S. A. (2017). Poverty alleviation through financing microenterprises with equity finance. Journal of Islamic Accounting and Business Research, 8(1), 87–99. https://doi.org/10.1108/JIABR-07-2013-0022
- Sholikhah, Z. (2017). Determinant of the equity based financing volume: A case of Islamic banks in Indonesia. Research Journal of Finance and Accounting, 8(1), 30–39.
- Yusof, E. F. E., Kashoogie, J., & Kamal, A. (2009). Islamic finance: Debt versus equity financing in the light of Maqasid al-Shari’ah (MPRA Paper, pp. 1–20). Munich Personal RePEc Archive.
- Zuhayli, W. (2007). Financial transactions in Islamic jurisprudence: Volume 1 (Second). Damascus: Dar al-Fikr.
References
Ariff, M., & Iqbal, M. (2011). The foundations of Islamic banking: Theory, practice and education. United Kingdom: Edward Elgal Publishing limited.
Chong, B. S., & Liu, M. H. (2009). Islamic banking: Interest-free or interest-based? Pacific Basin Finance Journal, 17(1), 125–144. https://doi.org/10.1016/j.pacfin.2007.12.003
Financial Service Authority. (2016). Sharia Banking Statistics. Retrieved from http://www.ojk.go.id
Malik, M., Malik, A., & Mustafa, W. (2011). Controversies that make Islamic banking controversial: An analysis of issues and challenges. American Journal of Social and Management Sciences, 2(1), 41–46. https://doi.org/10.5251/ajsms.2011.2.1.41.46
Moussa, M. A. Ben, & Chedia, H. (2016). Determinants of bank lending: Case of Tunisia. International Journal of Finance and Accounting, 5(1), 27–36. https://doi.org/10.5923/j.ijfa.20160501.04
Othman, N., Maji, M. A., & Rahman, A. A. (2015). Equity-based financing and Islamic banks efficiency: stochastic frontier analysis. In the 2nd International Conference on Management and Muamalah. Bangi: Faculty of Management and Muamalah, International Islamic University College Selangor.
Shaikh, S. A. (2017). Poverty alleviation through financing microenterprises with equity finance. Journal of Islamic Accounting and Business Research, 8(1), 87–99. https://doi.org/10.1108/JIABR-07-2013-0022
Sholikhah, Z. (2017). Determinant of the equity based financing volume: A case of Islamic banks in Indonesia. Research Journal of Finance and Accounting, 8(1), 30–39.
Yusof, E. F. E., Kashoogie, J., & Kamal, A. (2009). Islamic finance: Debt versus equity financing in the light of Maqasid al-Shari’ah (MPRA Paper, pp. 1–20). Munich Personal RePEc Archive.
Zuhayli, W. (2007). Financial transactions in Islamic jurisprudence: Volume 1 (Second). Damascus: Dar al-Fikr.