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Islamic social reporting disclosure as a form of social responsibility of Islamic banks in Indonesia

  • Received March 25, 2020;
    Accepted April 15, 2020;
    Published April 27, 2020
  • Author(s)
    Link to ORCID Index: https://orcid.org/0000-0003-2174-7501
    Kuat Waluyo Jati
    ORCID ,
    Link to ORCID Index: https://orcid.org/0000-0002-6596-2054
    Linda Agustina
    ORCID ,
    Link to ORCID Index: https://orcid.org/0000-0001-9770-4968
    Indah Muliasari
    ORCID ,
    Link to ORCID Index: https://orcid.org/0000-0001-5144-6393
    Diah Armeliza
    ORCID
  • DOI
    http://dx.doi.org/10.21511/bbs.15(2).2020.05
  • Article Info
    Volume 15 2020, Issue #2, pp. 47-55
  • TO CITE АНОТАЦІЯ
  • Cited by
    5 articles
    Journal title: Journal of Islamic Economics Lariba
    Article title: The effect of corporate social responsibility, activity ratio, and capital structure on profitability of companies listed in the Jakarta Islamic Index
    DOI: 10.20885/jielariba.vol10.iss2.art30
    Volume: 10 / Issue: 2 / First page: 1265 / Year: 2024
    Contributors: Taufiq Agus Santoso, Yuli Andriansyah, Iman Bastanifar
    Journal title: Indonesian Journal of Islamic Studies
    Article title: The Effect of Profitability, Leverage, Liquidity and Sharia Supervisory Board on Disclosure of Islamic Social Reporting
    DOI: 10.21070/ijis.v7i0.1612
    Volume: 7 / Issue: / First page: / Year: 2022
    Contributors: Eko Wahyudi, Imelda Dian Rahmawati
    Journal title: Journal of Accounting and Digital Finance
    Article title: Faktor-faktor yang mempengaruhi pengungkapan islamic social reporting pada Bank Umum Syariah
    DOI: 10.53088/jadfi.v4i1.406
    Volume: 4 / Issue: 1 / First page: 12 / Year: 2024
    Contributors: Wahidah Arsyad, Mohammad Rofiuddin
    Journal title: Indonesian Journal of Islamic Studies
    Article title: The Effect of Profitability, Leverage, Liquidity and Sharia Supervisory Board on Disclosure of Islamic Social Reporting
    DOI: 10.21070/ijis.v8i0.1614
    Volume: 8 / Issue: / First page: / Year: 2022
    Contributors: Eko Wahyudi, Imelda Dian Rahmawati
    Journal title: Sustainability
    Article title: Social Reporting by Islamic Banks: The Role of Sharia Supervisory Board and the Effect on Firm Performance
    DOI: 10.3390/su141710965
    Volume: 14 / Issue: 17 / First page: 10965 / Year: 2022
    Contributors: Rita Wijayanti, Doddy Setiawan
  • 1236 Views
  • 379 Downloads

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License

Sharia-compliant companies had to add Islamic Social Reporting when disclosing Corporate Social Responsibility information due to its characteristics. Sharia-compliant companies in Indonesia still do not do this much, and it is very interesting to study, because every sharia-based entity must comply with sharia provisions in all aspects of its activities, including when compiling social reporting. The purpose of this study is to analyze the influence of profitability, liquidity, leverage, and an Islamic Governance Score on Islamic Social Reporting in Islamic commercial banks in Indonesia. The sampling is carried out using a purposive sampling technique for up to 10 Islamic commercial banks with a six-year observation period, so there are 60 units of analysis. The data are collected using a documentation technique. The analysis in the study uses panel data regression. Based on a Random Effect Model, the study showed that profitability and leverage do not affect Islamic Social Reporting, while liquidity and the Islamic Governance Score had an impact on the Islamic Social Reporting.

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  • PAPER PROFILE
  • AUTHORS CONTRIBUTIONS
  • FIGURES
  • TABLES
  • REFERENCES
  • Keywords
    Islamic governance score, Islamic social reporting, leverage, liquidity, profitability
  • JEL Classification (Paper profile tab)
    M14, M41
  • References
    30
  • Tables
    3
  • Figures
    0
    • Table 1. Variable description
    • Table 2. Hypotheses testing results
    • Table 3. Hypotheses acceptance or rejection
    • Affandi, H., & Nursita, M. (2019). Profitabilitas, Likuiditas, Leverage, dan Ukuran Perusahaan: Sebuah Analisis Islamic Social Reporting (Isr) Pada Perusahaan yang Terdaftar di Jii. Majalah Ilmiah Bijak, 16(1), 1-11.
    • Aribi, Z. A., & Gao, S. S. (2011). Narrative disclosure of corporate social responsibility in Islamic financial institutions. Managerial Auditing Journal, 27(2), 199-222.
    • Barkemeyer, R. (2007). Legitimacy as a key driver and determinant of CSR in developing countries (Paper for the 2007 Marie Curie Summer School on Earth System Governance) (23 p.). University of St Andrews and Sustainable Development Research Centre (SDRC) School of Management.
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    • Fitria, S., & Hartanti, D. (2010). Islam dan Tanggung Jawab Sosial: Studi Perbandingan Pengungkapan Berdasarkan Global Reporting Initiative Indeks dan Islamic Social Reporting Indeks. Simposium Nasional Akuntansi XIII. Purwokerto.
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    • Kamil, A., & Herusetya, A. (2012). Pengaruh Karakteristik Perusahaan Terhadap Luas Pengungkapan Kegiatan Corporate Social Responsibility. Media Riset Akuntansi, 2(1), 1-17.
    • Kasih, A. M., & Rini (2018). Factors Influencing Islamic Social Reporting Disclosure in Some Selected Countries (Conference Paper). KnE Social Sciences, 276-296.
    • Khoirudin, A. (2013). Corporate governance dan pengungkapan Islamic Social Reporting pada perbankan syariah di Indonesia. Accounting Analysis Journal, 2(2), 227-232.
    • Lestari, S. (2016). Pengaruh Tingkat Profiabilias, Likuiditas, Leverage, Ukuran Perusahaan Dan Umur Perusahaan Terhadap Pengungkapan Islamic Social Reporting Pada Perbankan Syariah Indonesia Tahun 2010–2014. Jurnal Akuntansi UNESA, 4(2), 1-24.
    • Lucyanda, J., & Siagian, L. G. (2012). The influence of company characteristics toward corporate social responsibility disclosure. Proceedings of the 2012 International Conference on Business and Management. Phuket, Thailand.
    • Maulida, A. P., Yulianto, A., & Asrori. (2014). Analisis Faktor-Faktor yang Mempengaruhi Pengungkapan Islamic Social Reporting (ISR). Makalah Simposium Nasional Akuntansi 17. Lombok. Universitas Mataram.
    • Meek, G. K., Roberts, C. B., & Gray, S. J. (1995). Factors influencing voluntary annual report disclosures by US, UK and continental European multinational corporations. Journal of International Business Studies, 26(3), 555-572.
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    • Othman, R., Thani, A. M., & Ghani, E. K. (2009). Determinants of Islamic social reporting among top Shariah-approved companies in Bursa Malaysia. Research Journal of International Studies, 12(10), 4-20.
    • Purwani, T., Nurlaela, & Wijayanti, S. A. (2018). The Influence of Company Size, Profitability, Liquidity, Leverage and Tax Avoidance Disclosure Against the Islamic Social Reporting on Companies Listed On the Indonesian Stock Index of Sharia. Proceeding ICTESS (International Conference on Technology, Education and Social Sciences).
    • Putra, H. F. (2014). Analisis Pelaksanaan dan Pengungkapan Corporate Social Responsibility (CSR) pada Perbankan Syariah di Indonesia Berdasarkan Indeks Islamic Social Reporting (ISR). Jurnal Ilmiah Mahasiswa FEB, 3(1).
    • Rosiana, R., Arifin, B., & Hamdani, M. (2015). Pengaruh Ukuran Perusahaan, Profitabilitas, Leverage, dan Islamic Governance Score Terhadap Pengungkapan Islamic Social Reporting (Studi Empiris pada Bank Umum Syariah di Indonesia Tahun 2010–2012). Jurnal Bisnis Dan Manajemen, 5(1), 87-104.
    • Taufik, T., Widiyanti, M., & Rafiqoh, R. (2015). Pengaruh Islamic Governance Score, Leverage Dan Profitabilitas Terhadap Islamic Social Reporting Indexpada Bank Umum Syariah Di Indonesia. Jurnal Manajemen Dan Bisnis Sriwijaya, 13(2), 177-198.
    • Triyuwono, I. (2012). Akuntansi Syariah: Perspektif, Metodologi, dan Teori (2nd ed.). Jakarta: Rajawali Press.
    • Wahyuni, S. (2018). Islamic Social Reporting Disclosure and Determinant Factors: Empirical Evidence from Islamic Banks in Indonesia. Advances in Social Science, Education and HumanitiesResearch, 231, 389-392.
    • Wan Abdullah, W. A., Percy, M., & Stewart, J. (2011). Corporate social responsibility in Islamic banks: A study of Shari’ah Supervisory Board disclosures and zakat disclosures in Malaysian and Indonesian Islamic banks. AFAANZ Conference (pp. 3-5).
    • Williams, G., & Zinkin, J. (2010). Islam and CSR: A study of the compatibility between the tenets of Islam and the UN Global Compact. Journal of Business Ethics, 91(4), 519-533.
    • Conceptualization
      Kuat Waluyo Jati, Linda Agustina
    • Formal Analysis
      Kuat Waluyo Jati, Diah Armeliza
    • Project administration
      Kuat Waluyo Jati, Indah Muliasari
    • Validation
      Kuat Waluyo Jati, Diah Armeliza
    • Visualization
      Kuat Waluyo Jati, Indah Muliasari
    • Writing – original draft
      Kuat Waluyo Jati, Linda Agustina
    • Writing – review & editing
      Kuat Waluyo Jati, Linda Agustina, Indah Muliasari, Diah Armeliza
    • Data curation
      Linda Agustina, Indah Muliasari
    • Investigation
      Linda Agustina, Indah Muliasari, Diah Armeliza
    • Methodology
      Linda Agustina, Diah Armeliza
    • Supervision
      Linda Agustina, Indah Muliasari
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