When financial performance of Islamic banks matters: The moderating effect of islamic social reporting

Abstract

The purpose of this study is to adjust how the moderation of Islamic social reports impacts liquidity, leverage, business size, and asset turnover on financial performance. The purposive sampling method was used to collect fifty samples from Islamic commercial banks registered with the Financial Services Authority from 2013 to 2022. Data analysis was performed with the Statistics Program for Social Sciences, also known as SPSS. The results of the study show that liquidity and leverage do not affect financial performance; conversely, firm size and activity ratio affect financial performance. However, Islamic social reports can control liquidity, business size, and asset turnover on financial performance.