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Implementation of Islamic Corporate Governance, Islamic Corporate Social Responsibility, and Financial Performance toward Reputation:Study of Sharia Commercial Bank in Indonesia
Lucia Ari Diyani, Chita Oktapriana

Fakultas Bisnis, Jurusan Akuntansi Universitas Bina Insani


Abstract

The Prospect of Sharia financial sector in Indonesia is getting better, and the existence of Sharia commercial banks (SCB) in Indonesia is guaranteed by law. This research examines the implementation-s influence of Islamic Corporate Governance (ICG), Islamic Corporate Social Responsibility (ICSR), and financial performance toward reputation, a study of SCB in Indonesia. The result of this research confirmed previous researches, some results are supported but some others aren-t supported. This research re-examine and elaborate previous researches by adding measurement variables from 3 financial ratios that represent liquidity, profitability and solvency. ICG is measured by self assessment rank in Good Corporate Governance report from sharia bank. ICSR is measured by the Islamic Social Reporting Index (ISR Index) and reputation is measured by the calculation of Global Reporting Initiative. The population in this research is all SCB in Indonesia. The sampling technique used is purposive and obtained 10 SCB with eight year research period from 2011–2018. Financial performance as a dependent variable is measured by Capital Adequacy Ratio (CAR), Operating Efficiency Ratio (OER), and Financing to Deposit Ratio (FDR). The data analysis method used is logistic regression. The results are ICSR has a positive effect while CAR and FDR has negative effects toward reputation. ICG and OER has no effect toward reputation. Other factors that have not been studied such as Risk Based Bank Rating including Non Performing Financing (NPF) or Investment Risk (composition and concentration of financing based on profit sharing) are able to implicate on different research

Keywords: Islamic Corporate Governance, Islamic Corporate Sosial Responsibility, Reputation, Financial Performance

Topic: Corporate Governance

Link: https://ifory.id/abstract/d2bDGqFWJxfA

Conference: Annual International Conference on Accounting Research (AICAR 2019)

Plain Format | Corresponding Author (Chita Oktapriana)

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