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  • The effect of profitability, size and Shariah supervisory board of an Indonesian Islamic bank on the Islamic social reporting disclosure

The effect of profitability, size and Shariah supervisory board of an Indonesian Islamic bank on the Islamic social reporting disclosure

  • Received November 7, 2020;
    Accepted September 6, 2021;
    Published September 14, 2021
  • Author(s)
    Link to ORCID Index: https://orcid.org/0000-0003-4561-7461
    Fachrurrozie
    ORCID ,
    Link to ORCID Index: https://orcid.org/0000-0003-4743-1134
    Ahmad Nurkhin
    ORCID Researcher ID ,
    Link to ORCID Index: https://orcid.org/0000-0002-8902-0221
    Agus Wahyudin
    ORCID ,
    Link to ORCID Index: https://orcid.org/0000-0003-3110-2694
    Al Mamnukhin Kholid
    ORCID ,
    Link to ORCID Index: https://orcid.org/0000-0001-6888-1236
    Ika Agustina
    ORCID
  • DOI
    http://dx.doi.org/10.21511/bbs.16(3).2021.08
  • Article Info
    Volume 16 2021 , Issue #3, pp. 84-92
  • TO CITE АНОТАЦІЯ
  • Cited by
    1 articles
    Journal title: World Banking Abstracts
    Article title: A: Financial Institutions
    DOI: 10.1111/woba.12184
    Volume: 39 / Issue: 3 / First page: 159 / Year: 2022
    Contributors:
  • 522 Views
  • 252 Downloads

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

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.

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  • PAPER PROFILE
  • AUTHORS CONTRIBUTIONS
  • FIGURES
  • TABLES
  • REFERENCES
  • Keywords
    assets, ISR disclosure, return on assets, return on equity, SSB members
  • JEL Classification (Paper profile tab)
    M41, G20, G30
  • References
    34
  • Tables
    3
  • Figures
    1
    • Figure 1. Conceptual framework
    • Table 1. Operational definitions of research variables
    • Table 2. Model test results
    • Table 3. Hypothesis testing
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    • Conceptualization
      Fachrurrozie, Ahmad Nurkhin, Agus Wahyudin, Al Mamnukhin Kholid
    • Data curation
      Fachrurrozie, Ahmad Nurkhin, Al Mamnukhin Kholid, Ika Agustina
    • Formal Analysis
      Fachrurrozie, Agus Wahyudin, Al Mamnukhin Kholid, Ika Agustina
    • Funding acquisition
      Fachrurrozie, Al Mamnukhin Kholid
    • Resources
      Fachrurrozie, Ahmad Nurkhin, Al Mamnukhin Kholid
    • Supervision
      Fachrurrozie
    • Validation
      Fachrurrozie, Ahmad Nurkhin, Agus Wahyudin
    • Writing – original draft
      Fachrurrozie, Ahmad Nurkhin, Agus Wahyudin
    • Writing – review & editing
      Fachrurrozie, Ahmad Nurkhin, Agus Wahyudin
    • Methodology
      Fachrurrozie, Ahmad Nurkhin, Agus Wahyudin
    • Investigation
      Ahmad Nurkhin
    • Project administration
      Ahmad Nurkhin, Ika Agustina
    • Software
      Ahmad Nurkhin, Ika Agustina
    • Visualization
      Ika Agustina
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