THE EFFECT OF CORPORATE GOVERNANCE, FINANCIAL RATIOS, AND SUKUK STRUCTURE ON CORPORATE SUKUK RATINGS IN COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE

This study aims to examine the effect of corporate governance, financial ratios, and sukuk structure on corporate sukuk ratings in companies listed on the Indonesia Stock Exchange (IDX) for the period 2019–2023. Corporate governance variables are proxied by institutional ownership, financial ratios consist of leverage and profitability, while sukuk structure is seen from the type of contract used, namely mudharabah and ijarah. Sukuk ratings are measured based on the assessment given by the PEFINDO rating agency. This study uses a quantitative approach with multiple linear regression analysis techniques. The sample was selected using the purposive sampling method and produced 35 observations from 7 companies that issued sukuk during the study period. The results showed that corporate governance and sukuk structure had a positive and significant effect on sukuk ratings. Meanwhile, leverage and profitability did not have a significant effect. These findings indicate that non-financial aspects, especially institutional supervision and selection of sharia contracts, receive more attention in sukuk risk assessment compared to traditional financial indicators. This study is based on Agency Theory and Sharia Enterprise Theory to explain the importance of supervision and ethical and spiritual responsibilities in the management of sharia financial instruments. The practical implications of this study are the need for companies to strengthen governance and choose sukuk structures that are in accordance with sharia principles, as well as the importance for investors to consider non-financial aspects in making investment decisions.