Research Paper
Year: 2022 | Month: February | Volume: 9 | Issue: 2 | Pages: 368-380
DOI: https://doi.org/10.52403/ijrr.20220248
Analysis of Effects of the Disclosure of Islamic Corporate Governance (ICG) and Islamic Corporate Social Responsibility (ICSR) on Financial Performance (An Empirical Study on the Sharia Banks in Indonesian in 2012-2020)
M. Afif Herliandi Nasution1, Azhar Maksum1, Idhar Yahya1
1Department of Accounting, Faculty of Economics and Business at Universitas Sumatera Utara, Indonesia.
Corresponding Author: M. Afif Herliandi Nasution
ABSTRACT
The objective of the research is to determine the effects of the disclosure of Islamic Corporate Governance (ICG) and Islamic Corporate Social Responsibility (ICSR) on financial performance. The amount of ICG and ICSR disclosure can measure from the disclosure score compiled based on the standards of the IFSB, AAOIFI, and relevant previous studies. Profitability ratios measure financial performance in the form of ROA.
The population in the research is the Sharia Commercial Bank (BUS) in the period 2012-2020. The research uses pooling data as the sampling method to obtain 109 observational data, which was analyzed using SmartPLS 3.2 and SPSS 23 software. The result shows that the level of disclosure of financial statements from Islamic Commercial Bank shows a good level of disclosure of ICG and ICSR, 74% and 68%, respectively. The result of empirical testing proves that the disclosure of ICG and ICSR has a direct effect positively and significantly on financial performance.
Keywords: disclosure, ICG, ICSR, financial performance.
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