The Mediate Effect Of Sharia Compliance on The Performance of Islamic Banking in Indonesia

This study aimed to prove whether Sharia Compliance (SC) mediates the influence of Good Corporate Governance (GCG), Sharia Supervisory Board (SSB), and Corporate Social Responsibility (CSR) on financial performance and maqashid sharia performance in Islamic Commercial Banks (ICBs) in Indonesia. A re...

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Main Authors: Usdeldi Usdeldi, M. Ridlwan Nasir, Muhamad Ahsan
Format: Article
Language:English
Published: Universitas Merdeka Malang 2022-03-01
Series:Jurnal Keuangan dan Perbankan
Subjects:
Online Access:https://jurnal.unmer.ac.id/index.php/jkdp/article/view/6158
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author Usdeldi Usdeldi
M. Ridlwan Nasir
Muhamad Ahsan
author_facet Usdeldi Usdeldi
M. Ridlwan Nasir
Muhamad Ahsan
author_sort Usdeldi Usdeldi
collection DOAJ
description This study aimed to prove whether Sharia Compliance (SC) mediates the influence of Good Corporate Governance (GCG), Sharia Supervisory Board (SSB), and Corporate Social Responsibility (CSR) on financial performance and maqashid sharia performance in Islamic Commercial Banks (ICBs) in Indonesia. A regression analytical method was employed based on Structural Equation Modeling with panel data in the annual report published by ICBs in Indonesia for the period 2014-2019. The results proved that SC mediated GCG and CSR on maqashid sharia performance positively while negatively mediated them on financial performance. At the same time, it did not mediate SSB on both financial performance and maqashid sharia performance. Based on these findings, policymakers should launch regulations on the disclosure of the dimensions GCG, SSB, CSR, and SC in the annual reports of ICBs. In practical implementation, ICBs should improve GCG, CSR, and SC as the performance of Islamic banking-supporting dimensions, and, evaluate SSB as the non-supporting one
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spelling doaj.art-4a4230f1e41f4cbe9e350771741f31222022-12-21T21:59:29ZengUniversitas Merdeka MalangJurnal Keuangan dan Perbankan1410-80892443-26872022-03-0126124726410.26905/jkdp.v26i1.61583093The Mediate Effect Of Sharia Compliance on The Performance of Islamic Banking in IndonesiaUsdeldi Usdeldi0M. Ridlwan Nasir1Muhamad Ahsan2UIN Sulthan Thaha Saifuddin JambiUIN Sunan Ampel SurabayaUIN Sunan Ampel SurabayaThis study aimed to prove whether Sharia Compliance (SC) mediates the influence of Good Corporate Governance (GCG), Sharia Supervisory Board (SSB), and Corporate Social Responsibility (CSR) on financial performance and maqashid sharia performance in Islamic Commercial Banks (ICBs) in Indonesia. A regression analytical method was employed based on Structural Equation Modeling with panel data in the annual report published by ICBs in Indonesia for the period 2014-2019. The results proved that SC mediated GCG and CSR on maqashid sharia performance positively while negatively mediated them on financial performance. At the same time, it did not mediate SSB on both financial performance and maqashid sharia performance. Based on these findings, policymakers should launch regulations on the disclosure of the dimensions GCG, SSB, CSR, and SC in the annual reports of ICBs. In practical implementation, ICBs should improve GCG, CSR, and SC as the performance of Islamic banking-supporting dimensions, and, evaluate SSB as the non-supporting onehttps://jurnal.unmer.ac.id/index.php/jkdp/article/view/6158csrgcgislamic banking performancesharia compliancessb
spellingShingle Usdeldi Usdeldi
M. Ridlwan Nasir
Muhamad Ahsan
The Mediate Effect Of Sharia Compliance on The Performance of Islamic Banking in Indonesia
Jurnal Keuangan dan Perbankan
csr
gcg
islamic banking performance
sharia compliance
ssb
title The Mediate Effect Of Sharia Compliance on The Performance of Islamic Banking in Indonesia
title_full The Mediate Effect Of Sharia Compliance on The Performance of Islamic Banking in Indonesia
title_fullStr The Mediate Effect Of Sharia Compliance on The Performance of Islamic Banking in Indonesia
title_full_unstemmed The Mediate Effect Of Sharia Compliance on The Performance of Islamic Banking in Indonesia
title_short The Mediate Effect Of Sharia Compliance on The Performance of Islamic Banking in Indonesia
title_sort mediate effect of sharia compliance on the performance of islamic banking in indonesia
topic csr
gcg
islamic banking performance
sharia compliance
ssb
url https://jurnal.unmer.ac.id/index.php/jkdp/article/view/6158
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