Determinants of financial performance and Islamic social reporting: Evidence from Indonesian Islamic banks

This research examined the connections of efficiency, regulatory and good corporate governance (GCG) variables on the achievement or performance of financial aspects and social reporting from Indonesia’s Shariah banks generally. Data and samples collected in this research include 34 Shariah banks, which are administered in the central bank, Bank of Indonesia for the year of 2009 until 2022. The financial achievement was determined with return on assets, and social reporting was determined with dummy 1 if the banks issue Islamic social reporting, and 0 otherwise. Regulation variables were measured with nonperforming financing (NPF), capital adequacy ratio (CAR), financial to deposit ratio (FDR), and net operating margin (NOM). Corporate governance variables were measured with firm age, board education, and board meeting. Efficiency variable was assessed with operating costs to revenue. The results show that regulation variables significantly impact financial achievement and social reporting, except NPF and CAR have nothing significant influence on Islamic social reporting. Efficiency variables significantly impact Islamic social reporting and financial achievement. Corporate governance variables significantly influence financial achievement and Islamic social reporting. Meanwhile firm age and board meetings have no remarkable influence on financial achievement.