Abstract
Islamic Rural Bank (BPRS) in Indonesia have developed rapidly and reached the lower levels of society. As an islamic institution, BPRS has both financial and social purpose. The effect of social performance on financial performance in BPRS has yet to be widely studied, especially using quantitative data over a long period. This research aims to determine the influence of social performance on financial performance at BPRS in Indonesia. This research uses internal factors (bank characteristics) and external factors (macroeconomic variables) as control variables. Generalized Method of Moments (GMM) parameter was used with Stata software to estimate selected BPRS panel data in the 2012-2021. The result shows that zakat has a positive and significant effect on financial performance at a significance level 0.01. The managerial implication of this study is to encourage Islamic rural banks to pay and report zakat.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
