The Mediate Effect Of Sharia Compliance on The Performance of Islamic Banking in Indonesia

Usdeldi Usdeldi, M. Ridlwan Nasir, Muhamad Ahsan

Abstract


This study aimed to prove whether Sharia Compliance (SC) mediates the influence of Good Corporate Governance (GCG), Sharia Supervisory Board (SSB), and Corporate Social Responsibility (CSR) on financial performance and maqashid sharia performance in Islamic Commercial Banks (ICBs) in Indonesia. A regression analytical method was employed based on Structural Equation Modeling with panel data in the annual report published by ICBs in Indonesia for the period 2014-2019. The results proved that SC mediated GCG and CSR on maqashid sharia performance positively while negatively mediated them on financial performance. At the same time, it did not mediate SSB on both financial performance and maqashid sharia performance. Based on these findings, policymakers should launch regulations on the disclosure of the dimensions GCG, SSB, CSR, and SC in the annual reports of ICBs. In practical implementation, ICBs should improve GCG, CSR, and SC as the performance of Islamic banking-supporting dimensions, and, evaluate SSB as the non-supporting one

Keywords


CSR; GCG; Islamic banking Performance; Sharia Compliance; SSB

Full Text:

PDF

References


Abdalmuttaleb, M., & Al-Sartawi, M. (2020). Shariah Disclosure and the Performance of Islamic Financial Institutions. Asian Journal of Business and Accounting, 13(1). https://doi.org/10.22452/ajba.vol13no1.5

Ahmed, I. E. (2019). The Impact of Corporate Governance on Islamic Banking Performance: The Case of UAE Islamic Banks. International Journal of Modern Research & Development, 1–10. https://www.researchgate.net/publication/336871377

Ajili, H., & Bouri, A. (2018). International Journal of Islamic and Middle Eastern Finance and Management. International Journal of Islamic and Middle Eastern Finance and Management, 11(3), 470–487. https://doi.org/10.1108/IMEFM-05-2017-0131

Almutairi, A. R., & Quttainah, M. A. (2017). Corporate governance: Evidence from Islamic banks. Social Responsibility Journal, 2. https://doi.org/10.1108/SRJ-05-2016-0061

Anton. (2018). Pengaruh Mekanisme Islamic Corporate Governance Terhadap Kinerja Bank Syariah Di Indonesia. Bisnis, 6(1), 36–52.

Antonio, M. S. (2001). Bank Shari’ah bagi Banker dan Praktisi Keuangan. Tazkia Institute.

Antonio, M. S., Sanrego, Y. D., & Taufiq, M. (2012). An Analysis of Islamic Banking Performance: Maqashid Index Implementation in Indonesia and Jordania. Journal of Islamic Finance, 1(1), 1–18.

Ardana, Y. (2019). Implementasi Good Corporate Governance (GCG) dalam Mengukur Risiko dan Kinerja Keuangan Bank Syariah di Indonesia. Jurnal Masharif al-Syariah: Jurnal Ekonomi dan Perbankan Syariah, 4(1).

Arsad, S., Said, R., Yusoff, H., Othman, Y. H., & Ahmad, R. (2014). The Relationship between Islamic Corporate Social Responsibility and Firm’s Performance: Empirical Evidence from Shari’ah Compliant Companies. European Journal of Business and Management, 6(36), 161–173.

Asrori. (2014). Implementasi Islamic Corporate Governance dan Implikasinya Terhadap Kinerja Bank Syariah. Jurnal Dinamika Akuntansi, 6(1), 90–101.

Atmadja, G., Irmadariyani, R., & Wulandari, N. (2019). Pengaruh Pengungkapan Corporate Social Responsibility Terhadap Kinerja Keuangan Perusahaan (Studi Empiris pada Perusahaan yang Terdaftar di Indeks SRI-KEHATI Bursa Efek Indonesia). e-Journal Ekonomi Bisnis dan Akuntansi, 6(2), 127.

Ausat, S. A. A. (2018). The Relationship Between Corporate Governance And Financial Performance In Islamic Banks. Jurnal Ekonomi & Studi Pembangunan, 19(2), 91–100. https://doi.org/10.18196/jesp.19.2.5001

Azheri, B. (2012). Corporate Social Responsibility; Dari Voluntary Menjadi Mandatory. Rajawali Pers.

Buallay, A. (2019). Corporate governance, Sharia’ah governance and performance A cross-country comparison in MENA region. International Journal of Islamic and Middle Eastern Finance and Management, 12(2), 216–235. https://doi.org/10.1108/IMEFM-07-2017-0172

Bukair, A. A., & Rahman, A. A. (2015). Bank performance and board of directors attributes by Islamic banks. International Journal of Islamic and Middle Eastern Finance and Management, 8(3), 291–309. https://doi.org/10.1108/IMEFM-10-2013-0111

Chapra, M. U., & Habib, A. (2002). Islamic Governance in Islamic Financial Institutions. Islamic Development Bank (IDB).

Desiana, L., Mawardi, & Gustiana, S. (2016). Pengaruh Good Corporate Governance Terhadap Profitabilitas (ROE) Pada Bank Umum Syariah Di Indonesia Periode 2010-2015. I-Finance, 2(2), 1–20.

Dewany, F. W. (2015). Analysis of the effect of GCG quality on the financial performance of Islamic banks. The Indonesian Accounting Review, 5(2), 119–128. https://doi.org/10.14414/tiar.v5i2.560

Dian, P. (2012). Pengaruh Good Corporate Governance Terhadap Kinerja Keuangan. Accounting Analysis Journal, 1(2), 176–193.

Djamilah, S., & Surenggono. (2017). Corporate Social Responsibility Sebagai Variabel Pemediasi Pengaruh Good Corporate Governance Terhadap Kinerja Keuangan. AKRUAL: Jurnal Akuntansi, 9(1), 41–53.

Ekasari, O., & Hartomo, D. (2019). Pengawasan Syariah, Tata Kelola, Dan Kinerja Bank Syariah. 19(1), 12.

Eksandy, A. (2018). Pengaruh Good Corporate Governance Terhadap Kinerja Keuangan Pada Perbankan Syari’ah Indonesia. Jurnal Akuntansi : Kajian Ilmiah Akuntansi (JAK), 5(1), 1.

Farida, A. (2018). Pengaruh Penerapan Good Corporate Governance Dan Pengungkapan Islamic Social Reporting Terhadap Kinerja Keuangan Perbankan Syariah Di Indonesia. Malia: Jurnal Ekonomi Islam, 10, 31–41.

Ferdyant, F., Anggraini, R. A., & Takidah, E. (2014). Pengaruh Kualitas Penerapan Good Corporate Governance dan Risiko Pembiayaan terhadap Profitabilitas Perbankan Syariah. Jurnal Dinamika Akuntansi dan Bisnis, 1(2), 134–149.

Fitria, S., & Hartanti, D. (2010). Islam dan Tanggung Jawab Sosial: Studi Perbandingan Pengungkapan Berdasarkan Global Reporting Initiative Indeks Dan Islamic Social Reporting Indeks. Simposium Nasional Akuntansi XIII. Purwokerto.

Fitriya, E. (2019). Pengaruh Corporate Social Responsibility Terhadap Kinerja Keuangan Perbankan Dengan Size Dan Leverage Ratio Sebagai Variabel Pemoderasi. JIAI (Jurnal Ilmiah Akuntansi Indonesia), 4(1), 42–53. https://doi.org/10.17969/jdab.v3i2.5384

Freeman, R. E. (1984). Strategic Management: A Stakeholders Approach. Fitman.

Handayani, Y. I., Fadah, I., Utami, E. S., & Sumani. (2020). The Moderating Role of Corporate Social Responsibility in Determining Islamic Bank Margin. Jurnal Ekonomi Malaysia, 54(1), 97–110. http://dx.doi.org/10.17576/JEM-2020-5401-7

Handoko, Y. (2014). Implementasi Social and Environmental Disclosure dalam Perspektif Teoritis. Jurnal JIBEKA, 8(2), 74.

Hanum, H. R. (2013). Pengaruh Karakteristik Corporate Governance Terhadap Effective Tax Rate. Diponegoro Journal Of Accounting, 2(2), 3–10.

Haryani, R. A., & Septiani, A. (2015). Analisis Pengaruh Dewan Pengawas Syariah Dan Intellectual Capital Terhadap Corporate Social Responsibility Pada Bank Syariah Di Indonesia. Diponegoro Journal Of Accounting, 4, 1–9.

Haryati, S., & Kristijadi, E. (2014). The Effect Of GCG Implementation And Risk Profile On Financial Performance At Go-Public National Commercial Banks. Journal of Indonesian Economy and Business, 29(3), 237–250.

Hikmah, L., & Oktaviana, U. K. (2019). Pengaruh Peran Dewan Pengawas Syariah (Dps) Dan Komite Audit Terhadap Kepatuhan Pada Prinsip Syariah. EL MUHASABA: Jurnal Akuntansi, 10(2).

Hisamuddin, N., & Tirta K, M. M. (2011). Pengaruh Good Corporate Governance Terhadap Kinerja Keuangan Bank Umum Syariah. Jurnal Akuntansi Universitas Jember, 2(10), 109–137.

Ilhami, H. (2009). Pertanggungjawaban Dewan Pengurus Syariah Sebagai Otoritas Pengawas Kepatuhan Syariah Bagi Bank Syariah. Mimbar Hukum, 21(3).

Jensen, M., & Meckling, W. (1976). Theory Of The Firm: Managerial Behavior, Agency Costs And Ownership Structure. Journal of Financial Economics, 3(4), 305–360.

Khan, I., & Zahid, S. N. (2019). The impact of Shari’ah and corporate governance on Islamic banks performance: Evidence from Asia. International Journal of Islamic and Middle Eastern Finance and Management. https://doi.org/10.1108/IMEFM-01-2019-0003

Kholid, M. N., & Bachtiar, A. (2015). Good corporate governance dan kinerja maqasid syariah bank syariah di Indonesia. Jurnal Akuntansi & Auditing Indonesia, 19(2), 126–136. http://dx.doi.org/10.20885/jaai.vol19.iss2.art4

Kusuma, M., & Rosadi, S. (2018). Islamic Corporate Governance and Islamic Banking Financial Performance. Journal of Finance and Islamic Banking, 1(2), 164–179.

Ludiman, I., & Mutmainah, K. (2020). Analisis Determinan Market Share Perbankan Syariah di Indonesia. Journal of Economic, Management, Accounting and Technology, 3(2), 169–181. https://doi.org/10.32500/jematech.v3i2.1336

Luthan, E.-, Rizki, S. A., & Edmawati, S. D. (2017). Pengaruh Pengungkapan Tanggung Jawab Sosial Perusahaan Terhadap Kinerja Keuangan. EKUITAS (Jurnal Ekonomi dan Keuangan), 1(2), 204–2018. https://doi.org/10.24034/j25485024.y2017.v1.i2.2754

Magdalena, S., Yuningsih, I., & Lahaya, I. A. (2017). Pengaruh Firm Size Dan Good Corporate Governance Serta Corporate Social Responsibility Terhadap Kinerja Keuangan Pada Bank Umum Syariah Di Indonesia. Equilibrium: Jurnal Ekonomi Syariah, 5(2), 221–238.

Majid, M. A., Saal, D. S., & Battisti, G. (2010). Efficiency In Islamic And Conventional Banking: An International Comparison. Journal of Productivity Analysis, 34(1), 25–43. https://doi.org/DOI: 10.1007/s11123-009-0165-3

Mallin, C., Farag, H., & Ow-Yong, K. (2014). Corporate social responsibility and financial performance in Islamic banks. Journal of Economic Behavior & Organization, 103, S21–S38. http://dx.doi.org/10.1016/j.jebo.2014.03.001

Mardiani, L., Yadiati, W., & Jaenudin, E. (2019). Islamic Corporate Governance Dan Kinerja Keuangan Unit Usaha Syariah (UUS) Periode 2013-2017. Jurnal Akuntansi : Kajian Ilmiah Akuntansi (JAK), 6(2), 128.

Mardikanto, T. (2014). CSR (Corporate Social Responsibility) (Tanggung Jawab Sosial Perusahaan). Alfabeta.

Mardliyyah, Z., Pramono, S. E., & Yasid, M. (2020). Pengaruh Islamic Social Reporting Terhadap Kinerja Bank (Studi pada Perbankan Syariah di Indonesia). Jurnal Ilmiah MEA, 4(1), 43–50.

Maria, & Soana, G. (2011). The Relationship Between Corporate Social Performance and Corporate Financial Performance in the Banking Sector. Journal of Business Ethics, 104(1), 133–148. https://doi.org/10.1007/s10551-011-0894-x

Meiyana, A., & Nur Aisyah, M. (2019). Pengaruh Kinerja Lingkungan, Biaya Lingkungan, Dan Ukuran Perusahaan Terhadap Kinerja Keuangan Dengan Corporate Social Responsibility Sebagai Variabel Intervening. Jurnal Nominal, 8(1), 1–18.

Mercedes, R., & Fernandez. (2016). Social Responsibilty and Financial Performance: The Role of Good Corporate Governance. Business Research Quarterly, 19, 137–151. http://dx.doi.org/10.1016/j.brq.2015.08.001

Mertzanis, C., Basuony, M., & Mohamed, E. K. A. (2018). Social Institutions, Corporate Governance and Firm-Performance in the MENA Region. Research in International Business and Finance, 1–39. https://doi.org/10.1016/j.ribaf.2018.12.005

Mohammed, M. O., & Taib, F. M. (2015). Developing Islamic Banking Performance Measures Based on Maqashid Al-Shariah Frame Work: Cases of 24 Selected Banks. Journal of Islamic Monetary Economic and Finance, 1(1), 55–77. https://doi.org/10.21098/jimf.v1i1.483

Mollah, S., & Zaman, M. (2015). Shariah Supervision, Corporate Governance, and Performance: Conventional VS Islamic Banks. Jurnal of Banking & Finance, 58, 418–435. http://dx.doi.org/10.1016/j.jbankfin.2015.04.030

Mosaid, F. E., & Boutti, R. (2012). Relationship between Corporate Social Responsibility and Financial Performance in Islamic Banking. Research Journal of Finance and Accounting, 3(10), 93–103.

Murtiyani, S., & Haq, A. (2012). Pengaruh Pengungkapan Corporate Social Responsibility (CSR), Good Corporate Governance (GCG), Dan Shariah Compliance Terhadap Kinerja Keuangan Perbankan Syariah. AT-TAUZI’ : Jurnal Ekonomi Islam, 7(2), 1–16.

Murwaningsari, E. (2009). Hubungan Corporate Governance, Corporate Social Responsibilities dan Corporate Financial Performance Dalam Satu Continuum. Jurnal Akuntansi dan Keuangan, 11(1), 30–41.

Musibah, A. S., & Sulaiman, W. (2014). The Mediating Effect of Financial Performance on the Relationship between Shariah Supervisory Board Effectiveness, Intellectual Capital and Corporate Social Responsibility, of Islamic Banks in Gulf Cooperation Council Countries. Asian Social Science, 10(17), 139–158. https://doi.org/10.5539/ass.v10n17p139

Nomran, N. M., & Haron, R. (2020). Shari’ah supervisory board’s size impact on performance in the Islamic banking industry An empirical investigation of the optimal board size across jurisdictions. Journal of Islamic Accounting and Business Research, 11(1), 110–129. https://doi.org/DOI: 10.1108/JIABR-05-2017-0070

Nurhisam, L. (2016). Kepatuhan Syariah (Sharia Compliance) dalam Industri Keuangan Syariah. Jurnal Hukum IUS QUIA IUSTUM, 23(1), 77–96. https://doi.org/10.20885/iustum.vol23.iss1.art5

Nurjannah, D. F., Pramono, S. E., & Ali, M. (2020). Pengaruh Sharia Compliance Terhadap Kinerja Perbankan Syariah di Indonesia. Akuntabilitas: Jurnal Ilmu Akuntansi, 13(2), 165–174. https://doi.org/10.15408/akt.v13i2.14272

Okereke, E., Abu, S., & Anyanwu, G. (2011). Impact of Corporate Governance on the Performance of Nigerian Deposit Money Banks. Indian Journal of Corporate Governance, 4(2), 15–25.

Platonova, E., Asutay, M., Dixon, R., & Mohammad, S. (2018). The Impact of Corporate Social Responsibility Disclosure on Financial Performance: Evidence from the GCC Islamic Banking Sector. Journal of Business Ethics, 151(2), 451–471. https://doi.org/10.1007/s10551-016-3229-0

Pratiwi, L. N., Kusumastuti, E. D., & Nuriasari, S. (2018). Pengaruh Implementasi Tata Kelola Perusahaan Terhadap Kinerja Perbankan Syariah Yang Terdaftar Di Bursa Efek Indonesia. Sigma-MU, 10(2), 31–37.

Putri, D. R. R., & Adityawarman. (2014). Hubungan Antara Corporate Social Responsibility Dan Kinerja Keuangan Industri Keuangan Syariah Di Indonesia. Diponegoro Journal Of Accounting, 3(3), 1–10.

Ramos, W. V., Reymundo, K. G. C., Pari, L. J. E., Rudas, N. M. N., & Rodriguez, P. B. V. (2020). The Effect Of Good Corporate Governance On Banking Profitability. Management Science Letters, 10, 2045–2052. https://doi.org/10.5267/j.msl.2020.2.007

Rifai, A., & Asrori. (2017). Analysis of Influence of Characteristics of Islamic Supervisory Board toward Islamic Financial Performance. Accounting Analysis Journal, 6(2), 160–172.

Rini, R. (2014). The effect of audit committee role and sharia supervisory board role on financial reporting quality at Islamic banks in Indonesia. Journal of Economics, Business, and Accountancy | Ventura, 17(1), 145.

Sandhu, H., & Shveta, K. (2005). Corporate Social Responsibility and Financial Performance: Exploring The Relationship. Managemen and Labour Studies, 30(3), 211–223.

Setiawaty, A. (2016). Pengaruh Mekanisme Good Corporate Governance Terhadap Kinerja Perbankan Dengan Manajemen Risiko Sebagai Variabel Intervening. Jurnal Ekonomi dan Manajemen, 13(1), 12–24.

Shleifer, A., & Vishny, R. W. (1997). A Survey of Corporate Governance. The Journal Of Finance, 52(2), 737–783. https://doi.org/10.1111/j.1540-6261.1997.tb04820.x

Siswanti, I. (2016). Implementasi Good Corporate Governance pada Kinerja Bank syariah. Jurnal Akuntansi Multiparadigma, 7(2), 156–323. https://doi.org/10.18202/jamal.2016.08.7023

Siswanti, I., Salim, U., Sukoharsono, E. G., & Aisjah, S. (2017). The Impact of Islamic Corporate Governance, Islamic Intellectual Capital and Islamic Financial Performance on Sustainable Business Islamic Banks. International Journal of Economics and Financial Issues, 7(4), 316–323.

Sugiyanto, E. K. (2011). Peningkatan Return Saham dan Kinerja Keuangan melalui Corporate Social Responsibility dan Good Corporate Governance. Aset, 13(1), 47–56.

Tirthankar, N., & Chanchal, C. (2020). Exploring Linkages Between Corporate Governance and Business Performance: Does Good Corporate Governance Lead to Enhanced Business Value? South Asian Survey, 27(1), 37–61. https://doi.org/10.1177/0971523120907189

Tjondro, D., & Wilopo, R. (2011). Pengaruh Good Corporate Governance (GCG) Terhadap Profitabilitas Dan Kinerja Saham Perusahaan Perbankan Yang Tercatat Di Bursa Efek Indonesia. Journal of Business and Banking, 1(1), 1–14.

Vinnicombe, T. (2010). AAOIFI reporting standards: Measuring compliance. Advances in Accounting, Incorporating Advances in International Accounting, 26, 55–65. https://doi.org/10.1016/j.adiac.2010.02.009

Waluyo, A. (2016). Kepatuhan Bank Syariah Terhadap Fatwa Dewan Syariah Nasional Pasca Transformasi Ke Dalam Hukum Positif. INFERENSI, Jurnal Penelitian Sosial Keagamaan, 10(2), 517–538. https://doi.org/dx.doi.org/10.18326/infsl3.v10i2.517-538

Widhianningrum, P., & Amah, N. (2012). Pengaruh Mekanisme Good Corporate Governance Terhadap Kinerja Keuangan Selama Krisis Keungan. Jurnal Dinamika Akuntansi, 4(2), 94–102.

Zakiah, S. (2017). Peran kepatuhan Syariah dalam memediasi Good Corporate Governance (GCG) terhadap kinerja keuangan pada bank umum Syariah. Prosiding Seminar Nasional Seri 7 “Menuju Masyarakat Madani Dan Lestari” Diseminasi Hasil-Hasil Penelitian, 476–486.




DOI: https://doi.org/10.26905/jkdp.v26i1.6158

Refbacks

  • There are currently no refbacks.


Bookmark and Share


Jurnal Keuangan dan Perbankan (Journal of Finance and Banking)

Diploma Program of Banking and Finance, Faculty of Economics and Business, University of Merdeka Malang

Published by University of Merdeka Malang

Mailing Address:
2nd floor Finance and Banking Building, Jl. Terusan Raya Dieng No. 57 Malang, East Java, Indonesia
Phone: -
Email: [email protected]

This work is licensed under a Creative
Commons Attribution-ShareAlike 4.0