Does sharia compliance affect Islamic Banks performance? Evidence from Islamic Banks in Indonesia / Inten Meutiaa, Mohamad Adam and Rulyanti Susi Wardhani
Sharia compliance is essential for Islamic financial institutions. This study has two objectives, namely, to determine the level of sharia compliance in Islamic banks in Indonesia, as well as to prove whether sharia compliance affects the performance of Islamic banks in Indonesia. To prove this, the...
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Universiti Teknologi MARA Selangor
2019
|
| Subjects: | |
| Online Access: | https://ir.uitm.edu.my/id/eprint/32295/1/AJ_INTEN%20MEUTIA%20JEEIR%20B%2019.pdf |
| _version_ | 1825737543741603840 |
|---|---|
| author | Meutiaa, Inten Adam, Mohamad Wardhani, Rulyanti Susi |
| author_facet | Meutiaa, Inten Adam, Mohamad Wardhani, Rulyanti Susi |
| author_sort | Meutiaa, Inten |
| collection | UITM |
| description | Sharia compliance is essential for Islamic financial institutions. This study has two objectives, namely, to determine the level of sharia compliance in Islamic banks in Indonesia, as well as to prove whether sharia compliance affects the performance of Islamic banks in Indonesia. To prove this, the researcher observed the annual report of 11 Islamic banks in Indonesia for the period 2012 to 2016. Sharia compliance is measured through the level of sharia governance in Islamic banks. Sharia governance instruments used to refer to Hasan (2011). While ROA and ROE measure the performance of Islamic banks, content analysis is used to identify sharia governance disclosures in annual reports. The study revealed that on average, the level of sharia compliance of Islamic bank in Indonesia is at the level of best practice while the results of statistical tests prove that there is no significant effect sharia compliance on the performance of Islamic banks both measured by ROA and ROE. |
| first_indexed | 2024-03-06T02:19:44Z |
| format | Article |
| id | oai:ir.uitm.edu.my:32295 |
| institution | Universiti Teknologi MARA |
| language | English |
| last_indexed | 2024-03-06T02:19:44Z |
| publishDate | 2019 |
| publisher | Universiti Teknologi MARA Selangor |
| record_format | dspace |
| spelling | oai:ir.uitm.edu.my:322952020-07-14T07:33:08Z https://ir.uitm.edu.my/id/eprint/32295/ Does sharia compliance affect Islamic Banks performance? Evidence from Islamic Banks in Indonesia / Inten Meutiaa, Mohamad Adam and Rulyanti Susi Wardhani jeeir Meutiaa, Inten Adam, Mohamad Wardhani, Rulyanti Susi HG Finance HJ Public Finance Finance, Islamic Sharia compliance is essential for Islamic financial institutions. This study has two objectives, namely, to determine the level of sharia compliance in Islamic banks in Indonesia, as well as to prove whether sharia compliance affects the performance of Islamic banks in Indonesia. To prove this, the researcher observed the annual report of 11 Islamic banks in Indonesia for the period 2012 to 2016. Sharia compliance is measured through the level of sharia governance in Islamic banks. Sharia governance instruments used to refer to Hasan (2011). While ROA and ROE measure the performance of Islamic banks, content analysis is used to identify sharia governance disclosures in annual reports. The study revealed that on average, the level of sharia compliance of Islamic bank in Indonesia is at the level of best practice while the results of statistical tests prove that there is no significant effect sharia compliance on the performance of Islamic banks both measured by ROA and ROE. Universiti Teknologi MARA Selangor 2019-09 Article PeerReviewed text en https://ir.uitm.edu.my/id/eprint/32295/1/AJ_INTEN%20MEUTIA%20JEEIR%20B%2019.pdf Does sharia compliance affect Islamic Banks performance? Evidence from Islamic Banks in Indonesia / Inten Meutiaa, Mohamad Adam and Rulyanti Susi Wardhani. (2019) Journal of Emerging Economies & Islamic Research <https://ir.uitm.edu.my/view/publication/Journal_of_Emerging_Economies_=26_Islamic_Research/>, 7 (3). pp. 1-14. ISSN 2289-2559 |
| spellingShingle | HG Finance HJ Public Finance Finance, Islamic Meutiaa, Inten Adam, Mohamad Wardhani, Rulyanti Susi Does sharia compliance affect Islamic Banks performance? Evidence from Islamic Banks in Indonesia / Inten Meutiaa, Mohamad Adam and Rulyanti Susi Wardhani |
| title | Does sharia compliance affect Islamic Banks performance? Evidence from Islamic Banks in Indonesia / Inten Meutiaa, Mohamad Adam and Rulyanti Susi Wardhani |
| title_full | Does sharia compliance affect Islamic Banks performance? Evidence from Islamic Banks in Indonesia / Inten Meutiaa, Mohamad Adam and Rulyanti Susi Wardhani |
| title_fullStr | Does sharia compliance affect Islamic Banks performance? Evidence from Islamic Banks in Indonesia / Inten Meutiaa, Mohamad Adam and Rulyanti Susi Wardhani |
| title_full_unstemmed | Does sharia compliance affect Islamic Banks performance? Evidence from Islamic Banks in Indonesia / Inten Meutiaa, Mohamad Adam and Rulyanti Susi Wardhani |
| title_short | Does sharia compliance affect Islamic Banks performance? Evidence from Islamic Banks in Indonesia / Inten Meutiaa, Mohamad Adam and Rulyanti Susi Wardhani |
| title_sort | does sharia compliance affect islamic banks performance evidence from islamic banks in indonesia inten meutiaa mohamad adam and rulyanti susi wardhani |
| topic | HG Finance HJ Public Finance Finance, Islamic |
| url | https://ir.uitm.edu.my/id/eprint/32295/1/AJ_INTEN%20MEUTIA%20JEEIR%20B%2019.pdf |
| work_keys_str_mv | AT meutiaainten doesshariacomplianceaffectislamicbanksperformanceevidencefromislamicbanksinindonesiaintenmeutiaamohamadadamandrulyantisusiwardhani AT adammohamad doesshariacomplianceaffectislamicbanksperformanceevidencefromislamicbanksinindonesiaintenmeutiaamohamadadamandrulyantisusiwardhani AT wardhanirulyantisusi doesshariacomplianceaffectislamicbanksperformanceevidencefromislamicbanksinindonesiaintenmeutiaamohamadadamandrulyantisusiwardhani |