Abstract
This study aims to examine the effect of Islamic Corporate Governance (ICG) that consist of Sharia Supervisory Board (SSB) which is measured using education level, ratio of independent commissioners, and board of director meetings on maqashid sharia performance. The population in this study was Islamic Bank listed on the Financial Services Authority (FSA) in 2013-2018 as many as 11 Islamic Banks. The sampling technique used in this study was purposive sampling method and obtained as many as 54 units of analysis. Data collection used documentation technique. The analytical method used in this study was panel data regressions using Eviews 9. The results of the study indicate that Sharia Supervisory Board (SSB) which is measured using education level, ratio of independent commissioners, and board of director meeting of board do not have effect on maqashid sharia performance. The conclusion of this research is that maqashid sharia performance of Indonesian Islamic Bank just 34.138 %, that means maqashid sharia has not been a target priority in Indonesian Islamic Bank. Thus, the factors examined have not been optimized yet for achieving the goal of sharia (maqashid sharia).
Highlights
Islam as a perfect religion has governed everything in human life, including financial problems
This study examines the influence of Islamic Corporate Governance (ICG) by reducing it to some variables, namely Sharia Supervisory Board (SSB) using SSB education level measurement, proportion of independent commissioners, and board of directors meetings
The numbers listed in table 4 describe information on descriptive statistics on the variables of maqashid sharia performance, SSB, proportion of board of independent commissioners, board of directors meetings
Summary
Islam as a perfect religion has governed everything in human life, including financial problems. The goal to be achieved in Islamic economics is to reach falah (world and hereafter victory). The assessment of banking performance is carried out by all stakeholders in order to maintain stakeholder trust to the banking system. This assessment is important to be conducted as one of the Semarang, Indonesia, 50229 references for stakeholder decision making. According to Antonio, et al (2012) measurement of company performance in the international world, including sharia banking is still limited to conventional ratio measurements such as CAMELS (Capital, Asset, Management, Earning, Liquidity, Sensitivity of Market Risk) and EVA (Economic Value Added). Measurements using conventional ratios only focus on achieving financial goals, but ignoring the achievement of sharia objectives
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