Sharia Governance Research Articles

An extended review on Sharia governance studies from 1985 to 2022

Purpose This study aims to identify the significant scientific actors, reveal the intellectual structure and explore essential features for future research direction in Sharia governance studies. Design/methodology/approach The study applies a hybrid review combining bibliometric analysis and content analysis. It uses Rstudio (biblioshiny), VOSviewer and Microsoft Excel to analyze 457 articles published in 206 journals indexed by Scopus and/or Web of Science during the period of 1985 until the end of 2022. Findings The paper discovered four distinct streams of Sharia governance studies: structure of Sharia governance, Sharia governance and risk management, Sharia governance and sustainability and the effect of Sharia governance toward firm’s financial performance. Furthermore, it derives and summarizes 26 main research questions for future studies. Research limitations/implications In terms of theoretical implications, the finding contributes to the general literature on Sharia governance by conducting bibliometric analysis and content analysis. In terms of practical implications, this study suggests that Sharia governance should be strengthened by the management of Islamic banks and other Islamic-based businesses. Originality/value To the best of the authors’ knowledge, this study is among the early studies using a hybrid review on the topic of Sharia governance, allowing future researchers in this field to capture the trends and progress of current literature as well as the research gaps to be filled in by future researchers.

Takaful Industrial Research Developments: A Bibliometric Analysis On The Scopus Database

This study aims to describe research development in the takaful industry from 2013 to 2022. This study used bibliometric analysis research methods. The data used is only sourced from research in the takaful industry field indexed by Scopus. There were 261 articles analyzed using Vosviewer software. This research shows that Malaysia is the most significant contributor to research in the takaful industry. Salman is the most prolific writer, with 18 articles. Moreover, the Journal of Islamic Accounting and Business Research became the most popular journal with the most contribution in publishing articles in the takaful industry. Potential future topics are deposit insurance, takaful insurance, and Sharia governance associated with Islamic banking. The contribution of this research can be used as a consideration for discussion topics in research in this field.

Application of Islamic Financial Governance in Sharia Banking in Indonesia

This research suggests a connection between Sharia banking and Sharia governance, particularly in Indonesia. The qualitative data for the study were gathered using the library approach. In this study, secondary data from books and articles on the subject that were gathered from reputable research publications were utilized. The necessity for Sharia banking services as well as the expanding diversity of products are what are driving the growth of the Sharia banking business. The findings of the literature research indicate that the Islamic banking sector must understand how popular it is becoming. All organizations under oppression need Islamic governance because it promotes and upholds Islamic banking and finance. The findings of this study suggest that Bank Indonesia laws control the application of Islamic Sharia in Indonesia. Indonesian Sharia banking must comply with Sharia principles and is governed by several laws and regulations about the conduct of transactions. However, Indonesian Islamic banks have not yet been able to incorporate Islamic governance into their day-to-day activities.

Pengaplikasian Tata Kelola Keuangan Islam Dalam Perbankan Syariah di Indonesia

This research suggests a connection between sharia banking and sharia governance, particularly in Indonesia. The qualitative data for the study were gathered using the library approach. In this study, secondary data from books and articles on the subject that were gathered from reputable research publications were utilised. The necessity for sharia banking services as well as the expanding diversity of products are what are driving the growth of the sharia banking business. The findings of the literature research indicate that it is crucial for the Islamic banking sector to understand how popular it is becoming. All organisations under oppression need Islamic governance because it promotes and upholds Islamic banking and finance. The findings of this study suggest that Bank Indonesia laws control the application of Islamic sharia in Indonesia. Indonesian sharia banking must comply to sharia principles and is governed by a number of laws and regulations pertaining to the conduct of transactions. However, Indonesian Islamic banks have not yet been able to incorporate Islamic governance into their day-to-day activities.

Effects of Internal Finance, Islamic Governance and Islamic Corporate Responsibility on Profitability: Evidence of Islamic Banking in Indonesia

Purpose: The objective of this study was analyze the interrelationships of internal financial factors, which include financing risk and capital adequacy, ICG and ICSR as determinants of ROA in Islamic banking in Indonesia. Theoretical framework: Previous studies have provided mixed results regarding the application of ICG to profitability. Therefore, it is necessary to re-examine the implementation of ICG on the profitability of Islamic banks. Design/methodology/approach: The research sample consist of 14 sharia commercial banks in Indonesia in the study period 2012 to 2021 with a total of 130 observations. This study used multiple regression analysis. Findings: The results showed a negative effect of NPF on ROA financial performance. Furthermore, there was a positive effect of CAR and ICG disclosure on ROA financial performance. Meanwhile, disclosure of ICSR had no significant effect on ROA financial performance. Age control variables and Islamic bank size were found to have no effect on ROA. Research, Practical & Social implications: The government can make a regulation requiring Islamic banks in Indonesia to carry out ICSR because it is more suitable with business forms that use Islamic concepts. Originality/value: This study offers an examination of the factors affecting financial performance of financial and non-financial factors. Financial factors are seen in terms of financing risk and capital adequacy while non-financial factors are represented by sharia governance and sharia social responsibility in sharia commercial banks in Indonesia.

A systematic literature review on the role of sharia governance in improving financial performance in sharia banking

PurposeThe purpose of this paper is to systematically review the study of the relationship between sharia governance (SG), which is represented by the Sharia Supervisory Board (SSB), and internal sharia compliance, and whether it can affect the performance of Islamic banking.Design/methodology/approachLiterature search consists of two steps: random literature review and systematic literature review. The methodology adopted in this article is a systematic literature review.FindingsThe variable of internal sharia compliance, sharia risk and internal sharia audit on one of the indications of SG newly researched variable which will later be used as a new paradigm, to measure the implementation of Islamic sharia principles in sharia banking.Practical implicationsThe development of a conceptual framework by using measurement of the new SG has practical implications for sharia bank, which can later be applied to also increase sharia banking performance by complying with Islamic sharia principles. This new concept can be used as a reference by the Financial Service Authority (Otoritas Jasa Keuangan) to establish regulations regarding SG framework, especially in Indonesia.Originality/valueFurther research can add more of it or replace it with other variables that are more relevant, in such a way that it could be empirically tested on how the independence and remuneration (lit. performance allowance) of SSB and the internal sharia control team can affect the performance of sharia banks.

Pengaruh Islamic Corporate Social Responsibility Dan Sharia Governance Terhadap Kinerja Keuangan Perusahaan

This study aims to determine the effect of Islamic Corporate Social Responsibility and Sharia Governance on the financial performance of Islamic companies listed on the Indonesian Sharia Stock Index in 2018-2021.This study uses a quantitative approach associative research, which is measured using a panel data regression-based method with the help of Software Eviews 12. The population of this study are companies listed on the Indonesian Sharia Stock Index (ISSI) for the 2018-2021 period. The sample was determined based on purposive sampling with a total sample of 28 companies so that the total observations in this study were 112 observational data. The data used in this study are secondary data obtained by downloading the annual report on the official website of each company and testing using the t test (partially).The results show that (1) Islamic Corporate Social Responsibility has no effect on the company's financial performance (ROA) in companies listed on ISSI for the 2018-2021 period, (2) Sharia Governance has a significant positive effect on the company's financial performance (ROA) listed on ISSI. period 2018-2022.

Multidimensional Governance For Islamic Philanthropic Institutions: Extended Maqashid Sharia Perspective

Purpose — This study aims to build the concept of sharia governance of Islamic philanthropic institutions based on extended maqashid sharia. Design/methodology/approach — This research is qualitative research with a religionist paradigm rooted in Islamic values (Qur'an and Sunnah) and following sharia (maqashid sharia) objectives. The methodology built is an Islamic integrative methodology that integrates mashallah elements from the extended maqashid sharia. Findings — Multidimensional governance is intended to achieve Allah's pleasure in this world and the hereafter. Mashlahah (benefits) can be realized by maintaining the five dimensions of the extended maqashid sharia: spiritual, physical and non-physical, intellectual, social, and financial. Practical implications — This governance concept can be used to build new awareness for practitioners of Islamic philanthropic institutions or other Sharia nonprofit institutions in carrying out the idea of governance derived entirely from the Qur'an and hadith. The results of this study can also be used as a guide in improving the quality of governance of Islamic philanthropic institutions, leading to the increased trust of the people in Islamic philanthropic institutions. Originality/value—The concept of multidimensional governance is built from an intact reality. Multidimensional governance includes material, religious, Aaliyah, Kamiya, and messiah elements, as well as submission and obedience to Allah as the source of reality, knowledge, and truth so that the scope of governance is intact, covering material and non-material matters in addition to the aims and objectives of the world and hereafter. Paper type — case study

Do Good Governance Business Sharia, Innovation and Financial Performance Affect Islamic Social Reporting Quality?

Islamic Social Reporting is an important aspect for companies with sharia principles in increasing their value. Reporting Disclosure currently only focuses on quantity not quality. Quantity can cause information anomaly because it is only based on the amount of disclosure, the way to minimize it is to focus on the quality of social Islamic disclosure. The purpose of this study was to analyze empirically the effect of financial performance (ROA), Innovation Disclosure (ID) and Good Governance Business Sharia (GGBS) on Islamic Social Disclosure (ISR). This study uses moderated regression analysis (MRA) with e-views 11. The sample used is a banking company registered with the financial services authority (OJK). The results of this study indicate that ROA has no effect on ISR, while the other variables, namely ID and GGBS, have an effect on ISR. The results of this research have practical implications, namely the practice of sharia governance and innovation is a part that needs to be strengthened to encourage management to improve the quality of ISR disclosure. In terms of theoretical implications, the results of this research become literature that can contribute to the development of the ISR research model.

Islamic Governance for Managing Banking Performance Assessment

This research developed the Islamic governance model for assessing sharia banking performance management. This research engaged with mixed methods by combining a positive or quantitative paradigm approach and an interpretive paradigm. The quantitative approach was carried out using Factor Analysis with Structural Equation Modeling. Data collection was executed using the observation technique, three in-depth interviews, documentation in building the sharia governance model, and questionnaires distributed to respondents to measure more dominant indicators in building the sharia governance model. The result of the analysis scores demonstrated that the moral and integrity variable exhibited the best goodness of fit model. It was followed by independence and responsible freedom; continuous improvements; honesty; positive thinking; balance, transparency and openness; belief and faith; accountability; professionalism; spirit; management; fulfilment of trust; intelligence; leadership; and justice. Keywords: Islamic governance, Islamic banking, performance

Evaluation of Awareness and Perception of Islamic Microfinance Institutions and Higher Education Institutions in Indonesia Towards the Implementation of Sharia Governance: Dyad's Perspective

Purpose: This study aims to evaluate and compare the awareness and perceptions of Islamic microfinance institutions and higher education institutions in Indonesia related to implementing Sharia Governance. Theoretical framework: Academic and professional institutions can play an important role in promoting awareness and knowledge of Islamic banking and finance. Design/methodology/approach: This study involved two criteria for a sample of respondents: standards from Islamic microfinance institutions, which include Baitul Maal wat Tamwil (BMT) also known as Islamic Microfinance Institutions and Badan Pembiayaan Rakyat Syariah (BPRS) known as Sharia Smallholder Financing Banks in DKI Jakarta province, as well as university students. Descriptive analysis using Likert scale-based questions was used in reviewing evaluations related to this study. The dyad perspective, which includes the view of microfinance institutions and higher education institutions, is needed in research to find out and compare awareness and perceptions between the two research objects related to knowledge about Sharia Governance. Findings: Based on the studies that have been carried out, it can be concluded that there is still a lack of knowledge, information, and insight from students related to the implementation of Sharia governance compared to Microfinance Institutions. Research, Practical & Social implications: We suggest for students to increase the information gap between students. Universities can also review the curriculum related to special courses that explain sharia governance. Originality/value: The research focusing on the dyadic perspectives of the implementation of shariah governance according to Islamic Microfinance Institutions and Higher Education Institutions in Indonesia.

Mengembangkan Produk pada Layanan Jasa Informasi Perbankan dengan Shariah Governance untuk Pengaplikasian Keuangan Digital Syariah

With the growing development of Islamic banking in Indonesia, there is an increasing need for a development of products and services in Islamic banks. This is done with the aim of meeting market needs by increasing competitiveness in the scope of Islamic banking in the era of the industrial revolution 4.0. Hence the need for a implementation of GCG. By applying GCG principles which have an important role in achieving business continuity (sustainability), namely Islamic banks that still pay attention to common interests. The implementation itself is a manifestation of the responsibility of Islamic banks to the public that Islamic banks must be operated properly, expertly and prudently (prudent). With the development of the times and the advancement of technology, there is an increasing need for an Islamic financial technology in the use of technology-based financial services that are more efficient.
 Keywords: sharia bank products and services, sharia governance, sharia digital finance

Sharia governance standards and the role of AAOIFI: a comprehensive literature review and future research agenda

PurposeThe purpose of this study is to investigate the role of Auditing and Accounting Organization for Islamic Financial Institution (AOIFI) governance disclosure on the performance of Islamic financial institutions (IFIs) through systematic literature review approach.Design/methodology/approachThis study is based on the review of literature related to the AAOIFI accounting standards downloaded from Scopus database. This study includes review of 126 research articles, 10 review papers, 9 book chapters and 5 conference papers related to different roles played by AAOIFI in providing standards for accounting, auditing, governance and ethics for global IFIs.FindingsThe findings of this study suggest that AAOIFI has played a critical role in developing the accounting standards for the IFIs and contributed positively to the overall growth of the Islamic finance industry.Practical implicationsAAOIFI has played a critical role in issuing and development of accounting and auditing standards and has contributed positively to the financial performance of IFIs. Research gaps are identified, and there is a need to work on these gaps.Originality/valueThis study will contribute to the understanding the role of AAOIFI in issuing and development of accounting and governance standards and future research agenda based on a thorough review of literature.

Model of Sharia Governance and Escalation of Performance of Sharia Cooperatives

Purpose: This study aims to analyze a sharia governance model and its impact on the efficiency, information asymmetry, risk, and performance of sharia cooperatives. Theoretical framework: The purpose of the sharia cooperative is to improve the welfare of its members and the community's interest and participate in building the economy of Indonesia based on sharia principles (Sudjana and Rizkison, 2020). Design/methodology/approach: The type of research used is explanatory research to test the hypothesis. This study uses data analysis techniques using the smartPLS program. The research uses purposive sampling with sharia cooperatives located in 4 districts in Indonesia with a total sample of 165 cooperatives. Findings: The study's results found that the efficiency variable has a significant positive effect on the performance of the sharia cooperative. Information asymmetry has a nonsignificant negative impact on efficiency and the performance of sharia cooperatives. Information asymmetry has a significant positive effect on the risk of financing. The risk of financing has a nonsignificant negative effect on the performance of the sharia cooperative. Sharia governance has a significant positive impact on efficiency, information asymmetry, and the performance of sharia cooperatives but has a nonsignificant positive effect on the risk of financing. Research, Practical & Social implications: Further research is necessary to expand the research location, multiply the study's sample and variables and involve the cooperative members as respondents. Originality/value: The management of the sharia cooperative needs to apply sharia governance to improve efficiency and follow sharia provisions to maximize the performance of sharia cooperatives.

Social Reporting by Islamic Banks: The Role of Sharia Supervisory Board and the Effect on Firm Performance

This study aims to explore social reporting by Islamic banks (IB) (referred to as Islamic social reporting, ISR, hereafter) through two streams, i.e., its determinants and consequences on firm performance. Using annual report data from 90 samples of the world’s IB from 2016–2020, this study focuses on the sharia governance implementation through the role of the Sharia Supervisory Board (SSB). The SSB was measured by individual characteristics and IG-Score, representing a combination of dichotomous characteristics of the SSB, which have not been encountered in previous studies. Firm performance as a consequence of disclosure was determined by a more comprehensive approach based on accounting and the stock market. The study’s findings demonstrate the SSB’s beneficial influence on ISR, suggesting that the presence of an SSB can promote ISR practices. Social reporting has been found to have a negative impact on ROA, but it has a positive impact on MTBV and Tobin’s Q. The data suggest that while voluntary reporting practices may cause a short-term decline in profitability, they can have a positive impact on an enterprise’s long-term value.

PENGARUH BRAND IMAGE, LITERASI KEUANGAN SYARIAH, DAN SHARIAH GOVERNANCE, TERHADAP KEPUTUSAN MENGGUNAKAN JASA PERBANKAN SYARIAH

This study aims to analyze the effect of brand image, sharia financial literacy, and shariah governance, on the decision to use sharia banking services in Jepara Regency. This study is a quantitative study, with multiple linear regression analysis method, using SPSS version 16. The results showed that the brand image variable (X1) and Islamic financial literacy variable (X2), significantly influenced the decision to use Islamic banking services in Jepara Regency ( Y). While the shariah governance variable (X3) has no significant effect on the decision to use sharia banking services in Jepara Regency (Y). Simultaneously, the brand image variable (X1), the Islamic financial literacy variable (X2), and the sharia governance variable (X3), have a significant effect on the decision to use Islamic banking services in Jepara Regency.

DETERMINAN TATA KELOLA SYARIAH PADA BAITUL MAAL WAT TAMWIL (BMT) DI KOTA DEPOK

Sharia governance is a governance concept unique to Islamic financial institutions. This study aims to investigate the effect of organizational culture, organizational commitment, internal control, and education on sharia governance in Baitul Maal wat Tamwil (BMT). The respondents of this study were the staff of grade-A BMT in Depok City with a sample that was determined randomly. Data were collected through surveys and analyzed using the structural equation modeling (SEM) method using SmartPLS. The results of this study indicate that organizational culture, internal control, and education have a significant positive effect on sharia governance. On the other hand, organizational commitment does not have a significant positive effect on sharia governance. These results encourage Islamic cooperatives to maintain the organizational culture, internal control, and education of management. On the other hand, BMT must strengthen the organizational commitment of management, even though their tenure is not long, because strong organizational commitment can improve sharia governance.Keywords: Shariah governance, Organizational culture, Internal control, Organizational commitment, Education, and Batul Maal wat Tamwil (BMT)

COMPARISON OF SHARIA GOVERNANCE MODEL IN ISLAMIC FINANCIAL INSTITUTIONS BETWEEN THE GCG AND ASIAN COUNTRIES

Sharia governance is one of the fundamental characteristics that differentiate Islamic and conventional financial institutions. Therefore, the understanding related to sharia governance in Islamic financial institutions such as Islamic banking becomes significant. By using a literature study approach, this paper aims to review and compare regulations related to Islamic financial governance in GCG and ASIA countries. The result shows that the GCC countries and the Asia model of Sharia Governance are a huge difference. The GCC countries use the minimalist model of Sharia governance whereas Asian countries still use the interventionist model. The similarity in this term is about the fundamental of the regulations, which are based on the Quran and Hadith.

Supervision Effectiveness DPS Deep Sharia Governance and Guarantee in Sharia Banking in Indonesia

Islamic banking, an indicator of the development of the Islamic economy in Indonesia, where if the Indonesian people are asked about the Islamic economy, then the first thing to highlight is Islamic banking. Currently, the increase in Islamic financial institutions such as Islamic banks has increased significantly. Banuak people who are currently starting to believe in sharia mining lemabags, even so Islamic banks must continue to supervise products in Islamic banks. In the development of Islamic financial institutions, it is certainly inseparable from the Sharia Supervisory Board, which is one of the characteristics compared to conventional banks. Sayriah financial institutions have DPS in governance, where this DPS has a function to supervise the application of sharia principles in each product, besides that DPS must also supervise sharia guarantees, both from the guarantee mechanism to the execution of guarantee collection carried out by Islamic financial institutions.

Exploring the relationship between intellectual capital and maqasid sharia-based performance: the moderating role of sharia governance

PurposeThe purpose of this study is to examine the relationship between intellectual capital, sharia governance and Islamic bank performance based on the maqasid sharia index, as well as the moderating effect of sharia governance on the relationship between intellectual capital and maqasid sharia index.Design/methodology/approachDynamic panel regression is used with the two-step generalised method of moments with data from the Bankscope database for 2014–2018.FindingsThe results show that higher intellectual capital efficiency improves Islamic bank performance based on maqasid sharia. Larger board sizes are also found to improve Islamic bank performance. By contrast, higher sharia supervisory board quality and larger independent boards can reduce Islamic bank performance. In the moderating relationship, sharia governance is proven to moderate the relationship between intellectual capital and Islamic bank performance.Research limitations/implicationsThis study used a sample that is restricted to Islamic bank and only used value-added intellectual coefficient to measure intellectual capital. Thirdly, the quality of the sharia supervisory board only involves the presence, size, expertise and doctoral qualification of the sharia supervisory board.Originality/valueThis research: analyses the relationship between intellectual capital, sharia governance and Islamic bank performance in one research framework; uses maqasid sharia index-based Islamic bank performance benchmarks; and examines the moderating effect of sharia governance on the relationship between intellectual capital and maqasid sharia index.