The effect of profitability, size and Shariah supervisory board of an Indonesian Islamic bank on the Islamic social reporting disclosure
-
DOIhttp://dx.doi.org/10.21511/bbs.16(3).2021.08
-
Article InfoVolume 16 2021 , Issue #3, pp. 84-92
- Cited by
- 893 Views
-
411 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
This paper analyzes the effect of profitability and size of Indonesian Islamic banks on the level of Islamic Social Reporting (ISR) disclosure. This study also investigates the role played by the Sharia Supervisory Board (SSB) in the effect of profitability and size of an Islamic bank on ISR disclosure. The presence of SSB is very important in the operations of Islamic banks. SSB should be involved in important company decisions, including the ISR disclosure. The study covers all 14 Indonesian Islamic commercial banks as a population; the analysis will be conducted based on annual reports of the banks’ divisions for the period 2014–2018. A documentation technique was used to collect the data. Moderated Regression Analysis (MRA) was used for data analysis. The results show that the adjusted R-squared coefficient of the equation is 0.341. R-squared contributions of ROA, ROE, size, and SSB are –0.093, 0.010, 0.983, and –0.081. Other results show that profitability (ROA) and size (total assets) significantly affect the level of ISR disclosure among Indonesian Islamic banks. However, the results were indifferent regarding the role of SSB. There is no significant effect of SSB on ISR disclosure. SSB was important for moderating the relationship between profitability (ROA and ROE) and bank size and ISR disclosure level. SSB’s involvement in the decision making of Islamic banks will have a positive effect on the activities of Islamic banks. Islamic banks will tend to have a high level of ISR. Further researchers can develop SSB measurements for more accurate results.
- Keywords
-
JEL Classification (Paper profile tab)M41, G20, G30
-
References34
-
Tables3
-
Figures1
-
- Figure 1. Conceptual framework
-
- Table 1. Operational definitions of research variables
- Table 2. Model test results
- Table 3. Hypothesis testing
-
- Adnan, A., Ridwan, R., & Fildzah, F. (2016). Pengaruh Ukuran Bank, Dana Pihak Ketiga, Capital Adequacy Ratio, dan Loan to Deposit Ratio Terhadap Penyaluran Kredit Pada Perusahaan Perbankan yang Terdaftar Di Bursa Efek Indonesia Tahun 2011–2015. Jurnal Dinamika Akuntansi Dan Bisnis, 3(2), 49-64.
- Alam, A., Nizam, R. S., & Hidayat, M. T. (2021). The role of islamic microfinance institution in empowering indonesian fishing communities. Universal Journal of Accounting and Finance, 9(2), 178-183.
- Anggraini, A., & Wulan, M. (2017). Faktor Financial-Non Financial dan Tingkat Pengungkapan Islamic Social Reporting (ISR). Jurnal Akuntansi Dan Keuangan Islam, 3(2), 161-184.
- Astuti, W., & Nurkhin, A. (2019). The role of Islamic Governance on Islamic social reporting disclosure of Indonesia Islamic Banks. Proceeding of the Conference on Islamic Management, Accounting, and Economics (CIMAE) (pp. 26-36).
- Eksandy, A., & Hakim, M. Z. (2018). Faktor-Faktor Yang Berpengaruh Terhadap Pengungkapan Islamic Social Reporting pada Perbankan Syari’ah Indonesia Periode 2011–2015. Jurnal Akuntansi, 10(2), 187-198.
- Farook, S., Hassan, M. K., & Lanis, R. (2011). Determinants of Corporate Social Responsibility Disclosure: the Case of Islamic Banks. Journal of Islamic Accounting and Business Research, 2(2), 114-141.
- Freeman, R. E., & Vea, J. M. (2001). A Stakeholder Approach to Strategic Management (Working Paper No. 01-02). Darden Graduate School of Business Administration, University of Virginia.
- Hajawiyah, A., Siswantoro, D., & Dewi, M. K. (2019). Determinants of Islamic Social Reporting in Indonesia and Malaysia. Proceedings of the Asia Pacific Business and Economics Conference (APBEC 2018) (pp. 72-77).
- Haniffa, R. (2002). Social Reporting Disclosure: An Islamic Perspective. Indonesian Management & Accounting Research, 1(2), 128-146.
- Kalbarini, R. Y. (2018). Implementasi Akuntabilitas dalam Shari’ah Enterprise Theory di Lembaga Bisnis Syari’ah (Studi Kasus: Swalayan Pamella Yogyakarta). Al-Tijary, 4(1), 1-12.
- Kasih, A. M., & Rini. (2018). Factors Influencing Islamic Social Reporting Disclosure in Some Selected Countries. International Conference on Islamic Finance, Economics and Business (pp. 276-296).
- Khoirudin, A. (2013). Corporate Governance dan Pengungkapan Islamic Social Reporting pada Perbankan Syariah di Indonesia. Accounting Analysis Journal, 2(2), 227-232.
- Khotijah, S., Malikah, A., & Junaidi. (2019). Analisis Faktor-Faktor yang Mempengaruhi Islamic Social Responsibility. E-JRA, 8(5), 1-9.
- Mais, R. G., & Lufian, N. (2018). Pengaruh Sharia Governance Structure Terhadap Pengungkapan CSR Berdasarkan Islamic Social Reporting Index. Jurnal Akuntansi Dan Manajemen, 15(1), 83-100.
- Mubarok, M. S. (2019). The determinants of Islamic Social Reporting Disclosure and Its Impact on the Profitability of Sharia Banks. Journal of Islamic Economics, Management, and Business, 1(1), 137-172.
- Mukhibad, H. (2018). Peran Dewan Pengawas Syariah dalam Pengungkapan Islamic Social Reporting. Jurnal Akuntansi Multiparadigma (JAMAL), 9(2), 299-311.
- Mukhibad, H., & Fitri, A. (2020). Determinant of Islamic Social Reporting (ISR) Disclosure. KnE Social Sciences, 478-489.
- Ningrum, R. A., Fachrurrozie, & Jayanto, P. Y. (2013). Pengaruh Kinerja Keuangan, Kepemilikan Institusional, dan Ukuran Dewan Pengawas Syariah terhadap Pengungkapan ISR. Accounting Analysis Journal, 2(4), 430-438.
- Othman, R., Thani, A. M., & Ghani, E. K. (2009). Determinants of Islamic Social Reporting Among Top Shariah-Approved Companies in Bursa Malaysia Rohana. Research Journal of Internatıonal Studıes, 12, 4-20.
- Prasetyoningrum, A. K. (2018). Pengaruh Ukuran Perusahaan, Profitabilitas, Leverage, Efisiensi Biaya, dan Umur Perusahaan terhadap Islamic Social Reporting pada Perbankan Syariah di Indonesia. MALIA: Journal of Islamic Banking and Finance, 2(2), 147-162.
- Pratama, A. N. A., Muchlis, S., & Wahyuni, I. (2018). Determinan Pengungkapan Islamic Social Reporting pada Perbankan Syariah dengan Komisaris Independen sebagai Variabel Moderating. Al-Mashrafiyah: Jurnal Ekonomi, Keuangan Dan Perbankan Syariah, 2(1), 103-115.
- Purwani, T., Nurlaela, S., & Wijayanti, A. (2018). Size, Profitabilitas, Likuiditas, Leverage dan Tax Avoidance Terhadap Pengungkapan Islamic Social Reporting Di Indeks Saham Syariah. Indonesian Economics Business and Management Research, 1(1), 110-117.
- Putra, W. E., Afrizal., Mukhzarudfa., & Lubis, T. A. (2020). What factors Do influence Islamic social reporting (ISR) disclosure? Evidence from Indonesia. International Journal of Recent Technology and Engineering, 8(5), 50-55.
- Rama, A., & Meliawati, M. (2014). Analisis Determinan Pengungkapan Islamic Social Reporting: Studi Kasus Bank Umum Syariah Di Indonesia. Equilibrium: Jurnal Ekonomi Syariah, 2(1), 84-103.
- Rostiani, S. S., & Sukanta, T. A. (2018). Pengaruh Dewan Pengawas Syariah, Profitabilitas dan Leverage terhadap Pengungkapan Islamic Social Reporting (ISR). Jurnal Akuntansi Bisnis Dan Ekonomi, 4(2), 1225-1248.
- Rustam, B. R. (2013). Manajemen Risiko Perbankan Syariah di Indonesia. Jakarta: Salemba Empat.
- Santoso, A. L., & Dhiyaul-haq, Z. M. (2017). Determinan Pengungkapan Islamic Social Reporting pada Bank Umum Syariah di Indonesia. Jurnal Dinamika Akuntansi Dan Bisnis, 4(2), 125-142.
- Siddi, P., Widiastuti, L., & Chomsatu, Y. (2019). Pengungkapan Islamic Social Reporting (ISR) dan Faktor-Faktor yang Mempengaruhinya. Surakarta Manajemen Jornal, 1(1), 8-21.
- Suhendro, W. A., & Wijayanti, A. (2017). Faktor-Faktor yang Mempengaruhi Pengungkapan Islamic Social Reporting (ISR). Jurnal Ekonomi Paradigma, 19(2), 68-75.
- Sunarsih, U., & Ferdiyansyah, F. (2017). Determinant of the Islamic Social Reporting Disclosure. Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah, 9(1), 69-80.
- Umiyati, & Baiquni, M. D. (2018). Ukuran Perusahaan, Profirtabilitas, dan Leverage terhadap Islamic Social Reporting pada Bank Umum Syariah di Indonesia. Jurnal Akuntansi Dan Keuangan Islam, 6(1), 85-104.
- Voronova, E. Y., & Umarov, H. S. (2021). Islamic (partner) accounting and its comparison with international financial accounting standards (IFRS). Universal Journal of Accounting and Finance, 9(2), 267-274.
- Wahyuni, S. (2018). Islamic Social Reporting Disclosure and Determinant Factors: Empirical Evidence from Islamic Banks in Indonesia. Proceedings of the 5th International Conference on Community Development (AMCA 2018) (pp. 389-392).
- Widayuni, N., & Harto, P. (2014). Faktor-Faktor yang Mempengaruhi Pengungkapan Corporate Social responsibility pada Perbankan Syariah di Indonesia dan Malaysia. Diponegoro Journal of Accounting, 3(2), 1-11.