The Effect of Istishna Financing, Mudharabah Financing and Ijarah Financing on Financial Performance in Islamic Commercial Banks

Abstract

The purpose of this study is to see the partial and simultaneous effects of istishna, mudharabah and ijarah financing on profitability (ROA) of Islamic Commercial Banks in Indonesia. The method is a descriptive quantitative approach. The sample and population in this study are Islamic commercial banks in Indonesia in 2018-2023 on a quarterly basis. So that there are 24 samples in this study. Isthisna financing results in the conclusion that the level of profitability (ROA is significantly negatively affected by istishna financing. In addition, mudharabah financing significantly and negatively affects the level of profitability (ROA). Furthermore, it is shown that ijarah financing does not significantly affect the level of profitability (ROA). Simultaneously, it is concluded that istishna financing and mudharabah financing have a significant negative effect on the level of profitability (ROA). Then ijarah financing has no significant effect on the level of profitability (ROA). Data analysis used in this study requires descriptive analysis test, classical assumption test and hypothesis testing. The data used is secondary from Islamic banking statistics with the Financial Services Authority (OJK) website.