Integration of Corporate Governance and Social as a Catalyst for Islamic Banking Financial Performance; Evidence in Indonesia

Corporate governance can be assessed from how the company has been run openly and transparently, to gain public trust in market mechanisms. Islamic banking in Indonesia shows a pattern that social activities are an obligation that must be carried out. Social is a characteristic of Indonesian banking, a financial institution that has implemented the concept of sharia. In this study, the sample used amounted to 132 data on BUS's financial statements for 11 years from 2010-2020. As a result, improved governance, actually led to a decline in financial performance, by the regression value of -0.1682. Meanwhile, the social variable shows that if social performance increases, financial performance also increases by 0.282.

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Publication Details

Journal
Indonesian Journal of Business Analytics
Published
2024-08-23
DOI
https://doi.org/10.55927/ijba.v4i4.10233
Primary Topic
Islamic Finance and Banking Studies
Type
article
Field-Weighted Citation Impact
0.00
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article

Integration of Corporate Governance and Social as a Catalyst for Islamic Banking Financial Performance; Evidence in Indonesia

Sri Anugrah Natalina, Dijan Novia Saka, Grahita Chandrarin, Rofik Efendi et al.
Indonesian Journal of Business Analytics
Islamic Finance and Banking Studies
article

Integration of Corporate Governance and Social as a Catalyst for Islamic Banking Financial Performance; Evidence in Indonesia

Sri Anugrah Natalina, Dijan Novia Saka, Grahita Chandrarin, Rofik Efendi, Yuliani Yuliani, Maxion Sumtaxy
article en

Abstract

Corporate governance can be assessed from how the company has been run openly and transparently, to gain public trust in market mechanisms. Islamic banking in Indonesia shows a pattern that social activities are an obligation that must be carried out. Social is a characteristic of Indonesian banking, a financial institution that has implemented the concept of sharia. In this study, the sample used amounted to 132 data on BUS's financial statements for 11 years from 2010-2020. As a result, improved governance, actually led to a decline in financial performance, by the regression value of -0.1682. Meanwhile, the social variable shows that if social performance increases, financial performance also increases by 0.282.

Indonesian Journal of Business AnalyticsVol. 4(4)
Universitas Merdeka Malang (ID)
Openalex Percentile: Top 75%
Islamic Finance and Banking Studies
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