The effect of Sharia governance on financial performance mediated by leverage: Study on primary consumer goods sector in Indonesian Sharia Stock Index

This study aims to examine the effects of sharia governance on financial performance mediated by leverage. This study employs a quantitative methodology. The participants in this study obtained from Indonesia Exchange using 81 companies in the Primary Goods Consumer Sector. Purposive sampling was used, and there were 26 companies as the sample. The data analysis used SPSS and path analysis, with 78 observations from 2020-2022. The findings of this study indicate that Sharia governance does not have a significant effect on financial performance. However, sharia governance has a significant effect on leverage. Leverage also has a significant effect on financial performance. Leverage can mediate the link between Sharia governance and financial performance.