The effect of profitability, size and Shariah supervisory board of an Indonesian Islamic bank on the Islamic social reporting disclosure
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Author(s)FachrurrozieLink to ORCID Index: https://orcid.org/0000-0003-4561-7461
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Ahmad NurkhinLink to ORCID Index: https://orcid.org/0000-0003-4743-1134
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Agus WahyudinLink to ORCID Index: https://orcid.org/0000-0002-8902-0221
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Al Mamnukhin KholidLink to ORCID Index: https://orcid.org/0000-0003-3110-2694
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Ika AgustinaLink to ORCID Index: https://orcid.org/0000-0001-6888-1236
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DOIhttp://dx.doi.org/10.21511/bbs.16(3).2021.08
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Article InfoVolume 16 2021 , Issue #3, pp. 84-92
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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
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JEL Classification (Paper profile tab)M41, G20, G30
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References34
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Tables3
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Figures1
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- Figure 1. Conceptual framework
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- Table 1. Operational definitions of research variables
- Table 2. Model test results
- Table 3. Hypothesis testing
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The effect of working capital management on profitability: a case of listed manufacturing firms in South Africa
Investment Management and Financial Innovations Volume 14, 2017 Issue #2 (cont. 2) pp. 336-346 Views: 5922 Downloads: 3503 TO CITE АНОТАЦІЯWorking capital management plays a pivotal role in enhancing the operational efficiency of firms and their ultimate profitability. Therefore, the purpose of this study was to examine the trends in working capital management and its impact on the financial performance of listed manufacturing firms on the Johannesburg Securities Exchange (JSE). A panel data methodology was used with different regression estimators to analyze this relationship based on an unbalanced panel of 69 manufacturing firms listed during the period 2007–2016.
The findings revealed that the average collection period and the average payment period are negative and statistically significant for profitability, implying that firms which efficiently manage their accounts receivable and those that pay their creditors on time perform better than those that do not. Additionally, a positive statistically significant relationship between the number of days in inventory and profitability was supported suggesting that firms which stock-up and maintain their inventory levels suffer less from stock-outs and avoid challenges of securing financing when needed. This increases their operational efficiency and ensures profitability in the long run. It could not be ascertained whether a shorter or longer cash conversion cycle enhances firm profitability, since findings to support this premise were weak. However, it was observed that manufacturing firms are on average, carrying lot of debt in their capital structures.
The present study contributes to existing literature by presenting one of the very recent findings on this topic while simultaneously testing the validity of recent local and international methodologies, in order to inform policy change. -
Integrated reporting and financial performance of South African listed banks
Reon Matemane ,
Rozane Wentzel
doi: http://dx.doi.org/10.21511/bbs.14(2).2019.11
Banks and Bank Systems Volume 14, 2019 Issue #2 pp. 128-139 Views: 4392 Downloads: 1025 TO CITE АНОТАЦІЯThe recent development of integrated reporting intends to address the limitations associated with corporate reporting practices. This paper aims to examine whether a statistically significant relationship exists between integrated reporting quality and financial performance. Secondary data was used, namely the integrated reports and annual financial statements of South African banks listed on the Johannesburg Stock Exchange (JSE) for 2010–2014. For the period 2005–2009, only the financial statements were used, since integrated reporting was not yet mandatory. The research design was longitudinal and it combined qualitative and quantitative methods. Descriptive statistics and Feasible Generalized Least Square (FGLS) were used to explore the relationships between financial performance and integrated reporting quality. The results indicate that there is a positive relationship between integrated reporting quality (IRQ) and earnings per share (EPS). However, there is no significant relationship between IRQ and Tobin’s q (Q-Ratio), IRQ and return on equity (ROE), IRQ and return on assets (ROA) as well as IRQ and economic value added (EVA). Moreover, there are no significant differences on the financial performance of the listed banks before and after the introduction of integrated reporting.
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The role of supply chain finance in enhancing financial performance: Evidence from personal and home care product industry
Pinku Paul
doi: http://dx.doi.org/10.21511/imfi.22(2).2025.07
Investment Management and Financial Innovations Volume 22, 2025 Issue #2 pp. 77-85 Views: 4007 Downloads: 1551 TO CITE АНОТАЦІЯBy leveraging supply chain finance (SCF), businesses can optimize their cash flow and strengthen their supply chain relationships, improving overall performance. By effectively harnessing this strategy, companies can dramatically enhance cash flow, strengthen supplier relationships, and propel overall efficiency and growth across their supply chains. The study considered 34 years, from 1990-91 to 2023-24, for India's personal and home care product industry companies, which is a part of the consumer goods industry and contributes as the fourth largest sector in the country's GDP. The study emphasizes the development of an empirical model on the impact of SCF on financial performance parameters like net profit margin (NPM), return on equity (ROE), return on capital employed (ROCE), and return on assets (ROA). The study applied an ordinary least square regression method to establish the relationship. Four empirical models were developed where Model 1 and Model 2 indicate that the accounts receivable turnover ratio (ART) emerged as a key SCF parameter with a statistically significant correlation to firm performance, particularly influencing NPM and ROE. The results of Models 3 and 4 reflect that ATR does not significantly impact the ROCE and ROA of firms. The study results also show that the SIZE variable positively influences financial performance, while LEV (Leverage) has a negative influence. This study compellingly illustrates the connection between SCF and a firm’s economic success, providing actionable insights for stakeholders eager to sharpen their strategic approaches. By prioritizing SCF, industries can unlock significant competitive advantages and drive sustainable growth.
