Islamic Corporate Governance Research Articles

The Influence of Sharia Compliance and Islamic Corporate Governance on Fraud

This study aims to determine Islamic Corporate Governance (ICG) and Sharia Compliance against Fraud on Islamic Banks in Indonesia. The Independent variable used is Islamic Corporate Governance (ICG) and Sharia Compliance with Islamic Income Ratio (IsIR), Profit Sharing Ratio (PSR), and Zakat Performing Ratio (ZPR) as the proxy. In contrast, the dependent variable used is Fraud. The population in this study are all Islamic Banks (BUS) registered in Bank Indonesia in the period 2016 to 2019. The sample was selected using the purposive sampling method. Samples used in this study were 8 Islamic Banks with a 4-year study period. The analytical method used in this study is data panel regression with the help of e-views 10. The result of this study indicates that the Islamic Corporate Governance (ICG), Islamic Income Ratio (IsIR), and Profit-Sharing Ratio (PSR) are significant effects on the Fraud of Islamic Banks. At the same time, Zakat Performing Ratio (ZPR) did not affect the Fraud of Islamic Banks.

The Effect Of Islamic Corporate Governance, Islamic Corporate Social Responsibility, And Islamicity Performance Index On The Financial Performance Of Sharia Commercial Banks In Indonesia

The performance growth of Islamic commercial banks in Indonesia cannot be said to be good enough considering that Islamic commercial banks have been established for 30 years, therefore it is necessary to examine what factors can affect the performance of Islamic commercial banks. The purpose of this study is to determine the partial or simultaneous influence of Islamic Corporate Governance (ICG), Islamic Corporate Social Responsibility (ICSR) and Islamicity Performance Index (IPI) variables on the Financial Performance of Islamic Commercial Banks in Indonesia in 2016-2020. This study uses quantitative research methods. The population in this study were 14 Islamic commercial banks in Indonesia. The sample in this study were 5 Islamic commercial banks in Indonesia. The research method used is multiple linear regression analysis technique. The results show that the ICG and Zakat Performance Index (ZPR) variables have a significant effect on the financial performance of Islamic commercial banks in Indonesia in 2016-2020. While the ICSR and Profit Sharing Ratio (PSR) variables have no significant effect on the financial performance of Islamic commercial banks in Indonesia in 2016-2020. The variables ICG, ICSR, PSR, and ZPR simultaneously affect the financial performance of Islamic commercial banks in Indonesia in 2016-2020.

The Role of Dividend Policy as a Mediation Variable on Factors Affecting Company Value

This study aims to determine the role of dividend policy (DPR) as a mediator of the relationship between Islamic Corporate Governance (ICG), Investment Decisions (PER), and Funding Decisions (DER) on Firm Value (PBV) in companies registered with JII in 2014-2020, which were 48 companies. The method of determining the sample using the purposive sampling method is based on the criteria for the number of samples obtained by as many as 12 companies. The data analysis technique uses a quantitative approach. Data analysis tool using Eviews 10 with regression analysis selected fixed effect model. The results of this study indicate that ICG has a negative and insignificant effect on PBV, PER has a positive and significant effect on PBV, DER has a positive and insignificant effect on PBV, ICG has a negative and insignificant effect on DPR, PER has a positive and significant effect on DPR, DER has a negative and insignificant effect on the DPR, the DPR has a negative and insignificant effect on PBV, and the DPR is unable to mediate the influence of ICG, PER, and DER on PBV. Based on the F test, it is known that the ICG, PER, and DER variables with DPR as the intervening variable are proven to have a positive and significant effect on PBV.

Islamic Corporate Governance and Financial Performance in Companies Listed in JII

Corporate governance is very important for companies to have in order to improve financial performance. Where good corporate governance is good governance in running a company. This study aims to test whether Value Added Intellectual Coefficient (VAICTM) and good corporate governance with indicators of the size of the board of commissioners, independence of the board of commissioners, managerial ownership, affect financial performance using indicators ROA, ROE, EPS. The results showed that VAICTM had a positive and significant effect on ROA, ROE, and EPS. The size of the board of commissioners, managerial ownership has a positive and significant effect on ROA and ROE, while the independence of the board of commissioners has no effect on ROA and ROE. Managerial ownership has a positive and significant effect on EPS, while the size of the board of commissioners and the independence of the board of commissioners have no effect on EPS. Simultaneously or together with VAICTM, the size of the board of commissioners, the independence of the board of commissioners and managerial ownership shows the value of sig. of 0.000 (0.000 <0.05) from each model, this shows that H0 is rejected, meaning that at least one independent variable has an effect on the dependent variable. In other words, VAICTM, the size of the board of commissioners, the independence of the board of commissioners and managerial ownership have a simultaneous effect on ROA, ROE and EPS.

Monitoring and Efficiency in Governance: A Measure for Sustainability in the Islamic Banking Industry.

Corporate governance is a set of rules, regulations, procedures, processes, and practices through which an organization is controlled and directed. The present study aimed to examine the monitoring methods used in Islamic banking, including standardized measures for better performance, an individual’s aptitude towards Islamic financial markets, risk propensity, and the level of efficiency of the Islamic banking industry in Pakistan and Malaysia. There is room to improve monitoring systems for Islamic banking operations and standardized measures could improve efficiency, leading to more sustainable performance. The study uses a self-developed semi-structured scale based on literature and expert interviews, after content and context validity to gain a wide range of diverse information. In Pakistan and Malaysia, individuals’ perceptions are different because of differences in the banking environment and preferences. Eventually, the Islamic banking growth rate may differ in Pakistan and Malaysia. Thus, there should be regular monitoring to improve banking performance. Similarly, standardized measures for Islamic banking operations and governance performance in Pakistan and Malaysia will result in more sustainable performance. The antecedents of Islamic corporate governance could be improved to enhance banking performance, which helps individuals make decisions based on available product information. The business growth of the banking industry is based on convenient monitoring policies, standardized performance measures, and, most importantly, excellent corporate governance mechanisms. Improved monitoring measures will further enhance these business operations.

The Relationship between Islamic Corporate Governance, Human Governance and Sustainability Reporting of Shariah Compliant Companies in Malaysia

The Relationship between Islamic Corporate Governance, Human Governance and Sustainability Reporting of Shariah Compliant Companies in Malaysia

Does Intellectual Capital and Islamic Corporate Governance Affect Financial Performance and Earning Management on Sharia Banking in Indonesia?

<p>This study aims to analyze the relationship between intellectual capital and Islamic corporate governance on financial performance and its impact on earning management behavior. This study uses the analysis method Generalize Least Square and Path Analysis in Islamic banking. The sampling technique used purposive sampling. The data obtained is secondary data based on financial reports for a period of 9 years in the period 2011-2019. The results showed that the role of intellectual capital and Islamic corporate governance can directly affect financial performance, and the role of intellectual capital and Islamic corporate governance cannot directly affect Earnings Management however must go through Financial Performance.</p>

Analisis Islamic corporate governance dan pengungkapan islamic social reporting terhadap kinerja keuangan bank umum syariah dengan pendekatan moderated regression analysis

This study aims to determine the effect of Islamic Corporate Governance and Islamic Social Reporting on the performance of the quantity with the company's size as a moderation variable on the 2014-2019 bus. This quantitative research uses secondary data in the form of panel data. The sample of this study was 11 buses in 2014-2019 with annual data, so the number of samples used was 66. The method used was moderated regression analysis. The results of this study show that Islamic Corporate Governance has a significant negative effect on financial performance. The Islamic Social Reporting variable has no effect. The company's size as a variable moderation of Islamic Corporate Governance on financial performance has a positive effect, while the size of the company does not moderate Islamic Social Reporting on financial performance.

Analisis Islamic Corporate Governance Dalam Meningkatkan Kualitas Kinerja Karyawan Perbankan Syariah

The rapid development of Islamic Banks has led to various efforts to overcome this competition. One of them is to improve the quality of employee performance by implementing Islamic Corporate Governance (ICG). This study aims to look at the existing implementation of ICG and the performance of employees that can affect the existing fundraising. The research method used is the study of literature. The results of this study indicate that Islamic Corporate Governance can improve the quality of employee performance which is marked by good employee work results such as service and productivity so that it can attract people to provide sponsorship. However, if one of the principles is not optimal, the employee's performance will still increase but not optimal.

Level of Bank Health, Growth Rate and Banking Value in Indonesia

This study aims to explore the soundness, growth rate and value of banking in Indonesia. This study also compares the level of soundness, growth rate and value of Islamic banks and conventional banks. This research is interesting and important to do, because as a country with the largest Muslim population in the world, the Islamic banking sector is the main solution to help the economy in an Islamic way. However, the use of Islamic banking services by the public is still not optimal. Meanwhile, Islamic banks are proven to be able to survive the global economic crisis. The motivation underlying this research is that different perspectives in the management of the two types of banks affect the level of bank resilience in facing the crisis. It is proven that when there is a global crisis, Islamic banks are more resistant to testing and survive. This study examines the development of corporate governance in an in-depth Islamic perspective for Islamic commercial banks and compares it with corporate governance in conventional banks. The Islamic context in doing business is very different from the conventional business context. Therefore, it needs to be developed separately based on the concepts of monotheism. The research provides input for the development of models for the application of Islamic Corporate Governance. Another benefit in this study is the level of public acceptance of Islamic banking services, which are carried out. The research output is an empirical model for developing the Islamic Corporate Governance index. The research provides additional input for similar research that are still theoretically reviewing.

Keterkaitan Antara Transparansi Dengan Sifat Tablig Dalam Penerapan Prinsip GCG

Corporate Governance are known principles to protect business trust. The problem of developing good corporate governance practices coincided with the occurrence of financial cases involving several large companies such as Enron and WorldCom. Indonesia, where the majority of the population is Muslim, must understand the principles of good corporate governance according to sharia in running its business. The purpose of making this research is to introduce how to apply good and correct GCG principles to ensure the sustainability of company operations with the characteristics of Islamic Corporate Governance so that the company's operations are carried out according to the objectives of this research. This research refers to research from various sources, using descriptive analysis.

Maqasid Sharia-Based Performance Improvement Model: A Case Study in Islamic Banks in Indonesia

This study aims to develop and analyze a maqosid sharia-based performance improvement model for Islamic banks in Indonesia. First, a comprehensive and relevant literature review is carried out to form a performance improvement model based on maqasid sharia. Furthermore, the model is tested empirically using statistical tests. The results show that Islamic social reporting (ISR) has a positive role in increasing maqasid sharia. Islamic corporate governance (ICG) likewise has a positive function in expanding Islamic social reporting. Islamic social reporting (ISR) does not mediate the relationship between Islamic corporate governance (ICG) and maqasid sharia. Islamic social reporting (ISR) does not mediate the relationship between Islamic corporate governance (ICG) and maqasid sharia. The implication of this result shows that Islamic commercial banks should give more consideration to the level of accomplishment of maqasid sharia, with the application of Islamic corporate governance (ICG) and the better implementation of Islamic social reporting (ISR) under the objectives of sharia banks. Regulators need to make policies in the form of incentives for Islamic banking to carry out their operations optimally and further realize maqasid sharia. The findings of this research have implications for policymakers, the need for a policy on the mandatory implementation of Islamic corporate governance (ICG). This study builds a model that can improve performance based on Islamic maqosid in Islamic banks in Indonesia.

Improving Integrated Reporting Quality Through Islamic Corporate Governance

Innovative and adaptive to face new business challenges by making the process of creating added value for the company. Integrated Reporting is a reflection of the efficiency and effectiveness of various types of corporate capital. The main focus of the implementation of integrated reporting is on transparency and optimizing stakeholder interests, namely in the field of corporate governance. This study aims to examine the effect of the implementation of the Islamic corporate governance mechanism on integrated reporting. The sampling in this study was purposive sampling with the results of 12 Islamic banks. Hypothesis testing using multiple regression analysis. The result of hypothesis testing is the characteristics of independent commissioners consisting of the number and frequency of audit committee meetings have a positive and significant effect on improving the quality of integrated reporting. characteristics of the audit committee consisting of the number of audit committees, audit committee education, and the frequency of audit committee meetings have a significant effect on increasing integrated reporting quality. sharia supervisory board consisting of the number, education and frequency of sharia supervisory board meetings have an effect on increasing integrated reporting quality, except for the variable number of sharia supervisory boards

ANALISIS PENGARUH SHARI COMPLIANCE DAN ISLAMIC CORPORATE GOVERNANCE TERHADAP JUMLAH FRAUD BANK UMUM SYARIAH PERIODE 2015—2019

Fraud is a deviant act carried out by individuals for their own benefit but harming others. Fraud cases are still found to occur in Islamic commercial banks that run their operations based on Islamic principles. So this study aims to examine the effect of sharia compliance and Islamic corporate governance on the number of frauds in Islamic commercial banks. The independent variables used are Profit sharing ratio, Islamic income ratio, Directors-employees welfare ratio, and Islamic corporate governance. While the dependent variable used is sharia bank fraud. The research population is all Islamic commercial banks registered with the Financial Services Authority for the period 2015-2019, with a purposive sampling technique the sample used is 10 Islamic commercial banks with a study period of 5 years. The analytical method used in this research is panel data regression which is processed using Eviews 9 software. The results show that simultaneously sharia compliance and Islamic corporate governance have a significant effect on sharia commercial bank fraud. Partially, the Directors-employees welfare ratio and Islamic corporate governance have a significant positive effect on Islamic commercial bank fraud, while Profit sharing ratio and Islamic income ratio have no effect on Islamic commercial bank fraud. The results of this research have implications for practitioners and regulators in determining policies to minimize fraud.

Analisis faktor-faktor yang mempengaruhi kinerja keuangan Bank Umum Syariah

This study aims to examine how much Intellectual Capital, Islamic Corporate Governance, Islamic Social Responsibility, Islamic Ethical Identity, and Zakat can affect Islamic commercial banks' financial performance. The population in this study is Islamic Commercial Banks in Indonesia. The method of determining the sample using the purposive sampling method. The data used is secondary data. Hypothesis testing is done by using multiple regression analysis techniques. The study results indicate that Intellectual Capital and Islamic Ethical Identity affect financial performance. Islamic Corporate Governance does not affect Financial Performance, Islamic Social Responsibility, Islamic Corporate Governance, Islamic Social Responsibility, and Zakat does not affect Financial Performance of Islamic Commercial Banks. Simultaneously, these independent variables have a positive and significant influence on the Financial Performance of Islamic Commercial Banks.

Implementation of Islamic corporate governance and competitive advantage in SMEs: A systematic literature review approach

In the case of Indonesia, research related to good governance in SMEs is categorized as relatively new and has received little attention. Attention to SMEs is deemed inadequate, while the development of Sharia-based SMEs. The development of Sharia-based SMEs should be the basis for building a solid halal industry construction. SMEs must be developed in order to create a prosperous society. However, whether the method and type of business taken in fulfilling the needs of life are in accordance with Islamic rules, that is the problem and must be a concern for business actors. In running an SMEs business, of course there are limitations in selecting and sorting the products that will be produced by business actors. This study comprehensively examines the topic of governance from an Islamic perspective through analysis of corporate models and conceptual empirical research. The next stage of this research is to review previous research that became a reference and show the things that happened in the literature both theoretically and empirically. Literature study, this research shows the main findings, namely the emergence of uncertainty in the results of the application of governance from an Islamic perspective and competitive advantage in SMEs. Previous researchers conducted related research showing different research results so that further research will be carried out for previous researchers by integrating the comparison pattern between the competitive advantages of conventional SMEs with sharia and the application of corporate governance in SMEs.

Analysis of Effects of the Disclosure of Islamic Corporate Governance (ICG) and Islamic Corporate Social Responsibility (ICSR) on Financial Performance (An Empirical Study on the Sharia Banks in Indonesian in 2012-2020)

The objective of the research is to determine the effects of the disclosure of Islamic Corporate Governance (ICG) and Islamic Corporate Social Responsibility (ICSR) on financial performance. The amount of ICG and ICSR disclosure can measure from the disclosure score compiled based on the standards of the IFSB, AAOIFI, and relevant previous studies. Profitability ratios measure financial performance in the form of ROA. The population in the research is the Sharia Commercial Bank (BUS) in the period 2012-2020. The research uses pooling data as the sampling method to obtain 109 observational data, which was analyzed using SmartPLS 3.2 and SPSS 23 software. The result shows that the level of disclosure of financial statements from Islamic Commercial Bank shows a good level of disclosure of ICG and ICSR, 74% and 68%, respectively. The result of empirical testing proves that the disclosure of ICG and ICSR has a direct effect positively and significantly on financial performance. Keywords: disclosure, ICG, ICSR, financial performance.

Islamic Corporate Governance, Islamic Social Reporting dan Maqashid Syariah Pada Bank Syariah di Indonesia

This study aims to determine the effect of Islamic corporate governance, Islamic social reporting and Islamic maqashid on Islamic banks in Indonesia. The variable Islamic corporate governance is proxied by the Board of Directors, Board of Independent Commissioners, Institutional Ownership Audit Committee and Sharia Supervisory Board. The study was conducted on 11 Islamic banks in Indonesia using panel data from 2015-2019 using regression using a random effects model. The results found that only the ICG variables, namely the Independent Board of Commissioners and Institutional Ownership, had an effect on the performance of Islamic maqashid. Meanwhile, other ICG variables and ISR have no effect on sharia maqashid.

Analysis of the Effect of Sharia Compliance and Islamic Corporate Governance on Fraud in Islamic Banks in Indonesia 2017-2019

This study aims to analyze the factors that influence the occurrence of fraud in Islamic banks in Indonesia. Measurement of fraud in Islamic banks is based on the number of internal frauds that occur in the financial year. The population in this study is Islamic banks in Indonesia for the period 2017-2019. The sample is selected using purposive sampling method and the number of samples obtained is 24 samples. The data used in this study are secondary data in the form of financial reports and corporate governance reports. Data analysis is performed using classical assumption tests and regression analysis. The results of this study indicate that Islamic corporate governance has a significant effect on internal fraud in Islamic banks in Indonesia. Meanwhile, partially the profit sharing ratio and Islamic investment ratio do not have a significant effect on internal fraud in Islamic banks in Indonesia. Islamic banking must comply with accounting standards and Auditing Organizations for Islamic Financial Institutions (AAOIFI) to minimize fraud in operations.

Can Conventional Governance Mechanisms Be a Matter for Financial Performance in Islamic Countries?

Purpose: The study investigates the effect of eight conventional governance mechanisms, namely (board size, CEO duality, audit committee (AUDC) size, AUDC independence, board structure, AUDC number of meetings, board gender, and external audit quality), on financial performance for a sample of 246 non-financial listed firms in GCC countries from 2015-2019. Design/Methodology/Approach: Several models have been run using "Hierarchical Multiple Regression" for six GCC countries. Findings: The study has revealed different results for example, board size, AUDC size and AUDC number of meetings have insignificant effect on firm performance in most GCC countries. In contrast, board gender and board structure are the most determining factors of financial performance in GCC countries. Research Limitations/Implications: The results of the study call for legislative amendments that would urge companies to increase the number of non-executive members and empower females to effectively participate in corporate boards through the quota system. Originality/Significance: The current study is one of the few studies on governance in emerging Islamic markets, and therefore it contributes to the accounting literature by identifying the characteristics of governance in these countries. Practical and Social implications: Regulators should visit Islamic corporate governance rules and practices in financial institutions to improve conventional corporate governance in non-financial firms.