Indonesia Conference Directory

Corresponding Author
Bassem Mohammad Ismail

Institutions
UNAIR

Abstract
Abstract: Islamic banks in Indonesia has impressive growing remarkably since the last economic crisis in 2008, Indonesia noticed an increasing demand for Islamic banks (IBs) services in society contain majority musilms clients who share same believes and Islamic creed. Whilst the necessity for highly trained and knowledgeable manpower in the Islamic financial institutions (IFIs) is ingrained, the main confrontation is certainly incompatible of Shariah knowledge between what is desired by IFIs and what is actually available in the industry. Thus, this article argues for a competency framework for internal Sharaih auditors (ISA) in Indonesia. Recent research has revealed that the competency for ISA were still sophisticated and not even throughout is a need for it. Also recent research has been showed that shariah auditors are either trained in Sharaih or auditing knowledge. In fact there is an insistent necessity to outline competency requirements which will include the Training, Qualifications, Skills, Education, Experience, and knowledge (TQSEEK),these requirements to maintain Sharaih assurance and compliance through supply sufficient Shariah auditors in order to meet the market demand. This paper proposes a new TQSEEK framework as a foundation for competency ISA based on Sharaih Rahmatan lil alamin principle (RLAP) that may boost their effectiveness and practices propulsion in Indonesian Islamic banks (IIBs) services and products.

Keywords
: Training, Qualifications, Skills, Education, Experience, and knowledge, internal Shariah auditors, competency

Topic
Islamic Accounting/Auditing

Link: https://ifory.id/abstract/dQYXT8BJve2g

Corresponding Author
Rumaisah Azizah Al Adawiyah

Institutions
a) Durham University, UK
b) Durham University, UK

Abstract
This study investigates the determinants of environmental, social and governance (ESG) performance and accounting narrative disclosure in Islamic Financial Institutions (IFIs) over the period 2014-2016 using a comprehensive ESG index through content analysis method in annual reports. ESG disclosure index exhibits that IFIs engage in ESG activities and varies across countries. IFIs also present its disclosure towards universal disclosure than specific, meaning it emphasises on broad stakeholder focus. However, IFIs display its highest concern on governance dimension and pay least attention to social environment, implying IFIs should concern more about social and environment. Regarding narrative disclosure, this study tries to assess whether IFIs are conducting impression management as their strategy. The empirical result of this study exhibit that financial performance associates positively with ESG performance and the level of certainty in narrative disclosure. This means the higher the financial performance of the firm results in higher ESG disclosure and a more certain language. While concerning the relationship between ESG performance and the level of certainty, it is found that the higher certainty in the disclosure links with the lower ESG performance of IFIs, meaning that it indicates impression management in the firms. The findings of this study contribute to the body of academic knowledge by providing literature on the determinant of ESG performance and quality of narrative disclosure in IFIs and managerial implications for IFIs management and regulator. Therefore, this study is essential in stepping forward to the exploration and development of ESG performance of IFIs.

Keywords
Islamic Financial Institutions (IFIs), ESG disclosure, narrative disclosure, financial performance, impression management

Topic
Islamic Accounting/Auditing

Link: https://ifory.id/abstract/GKqb9cFLmE4T