Abstract
This study aims to find empirical evidence of the Islamic corporate governance mechanism influence the institutional ownership, commissioner board proportion, a board of independent commissioners, the sharia supervisory board proportion, and the audit committee on financial performance. The population of this study is Sharia Commercial Bank in Indonesia year 2013-2017. The population is 13 Sharia Commercial Banks. The sampling technique in this study used a purposive sampling technique. This study obtained 9 banks. The data used is secondary data and data analysis methods using multiple regression analysis. The result of this study concludes that the institutional ownership, the size of board commissioners, independent commissioner board, the size of the sharia supervisory board, and the audit committee do not affect financial performance.
Highlights
The development of Sharia banking in Indonesia has experienced very rapid growth
This study aims to find empirical evidence of the Islamic corporate governance mechanism influence the institutional ownership, commissioner board proportion, a board of independent commissioners, the sharia supervisory board proportion, and the audit committee on financial performance
The variables used in this study are institutional ownership, size of commissioner board, independent commissioners board, size of sharia supervisory board, audit committee, and financial performance
Summary
The development of Sharia banking in Indonesia has experienced very rapid growth. In accordance with sharia banking statistics in April 2018, there are 13 Sharia Commercial Banks (BUS), 21 Sharia Business Units (UUS), and 168 Sharia Rural Financing Banks (BPRS) in Indonesia OJK, (2018). The increasing number of Sharia banking that has emerged shows the increase in sharia business activities. It can be preconcerted that business competition between companies is getting tougher. Brealey et al (2007), states that businesses competition will always exist, but only companies that are able to provide product or service innovations that will survive. The performance itself is a description of the company's condition that reflects the results of work or achievements achieved by the company in a given period (Jumingan, 2011). By measuring performance, it can be known the level of success of the company is running its business for a certain period
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