Abdul Rohman

This research aims to examine the correlation between the Sharia Supervisory Board (SSB) and corporate governance in terms of the performance of Islamic banks’ Profit-and-Loss Sharing (PLS) ratio, zakah performance and non-halal income ratio, and to analyze the relationship between risk and income for both PLS and murabahah financing and the PLS financing ratio. Non-halal income is a bank’s income that is not in accordance with Sharia law. The object of this research was a sample of eleven commercial Islamic banks in Indonesia. The data are collected from each bank’s annual report and corporate governance statement, for 2009–2016. This study uses the multiple regression analysis method. The results show that:

1. The size and educational background of the SSB has a significant and positive effect on the zakah performance (Islamic tax), and has a negative effect on the ratio of non-halal income. The size and educational background of the SSB has no impact on the PLS financing ratio.
2. Corporate governance has a significant and positive influence on the PLS financing ratio and zakah performance but has no influence on the non-halal income ratio.
3. The mudharaba risk and PLS revenue have a positive impact on the PLS financing ratio.
4. PLS financing risk and murabahah income have a negative impact on PLS financing ratio.

The purpose of this paper is to substantiate the determinants of Indonesian banking profitability before and during the COVID-19 pandemic. Return on assets (ROA), return on equity (ROE), and net interest margin (NIM) were used to measure banking profitability. The research population is 43 banks listed on the Indonesia Stock Exchange in 2020. Purposive sampling has been used to determine the research sample. The criteria are banks issued annual reports during the observation period (2019–2020). The data collection method used is documentation. Data analysis techniques used are descriptive analysis methods and multiple regression analysis. The results of the study indicate that banks experienced a decrease in profitability during the pandemic compared to before the pandemic. ROA before the pandemic was 0.82 and dropped to 0.62 during the pandemic; ROE from 1.76 to 1.32; and NIM became 4.79 from 4.91. Other results show that only Capital Adequacy Ratio CAR and Non-performing Loans (NPL) can determine bank profitability (ROA and ROE) significantly, both before and during the pandemic (the coefficient is –0.112 and –4.856 for CAR; –0.977 and –0.913 for NPL). CAR and NPL influence profitability negatively. Meanwhile, size and liquidity are not able to significantly influence profitability of Indonesian banking (ROA, ROE, and NIM). Bank management that can control NPL well will have a significant impact on profitability.

Acknowledgment
We thank to Faculty of Economics and Business Universitas Diponegoro for the funding of research and publication.

Type of the article: Research Article

Abstract
This study examines the influence of governance, sustainability performance, and innovation on firm performance. The study employs a quantitative approach, utilizing panel data regression analysis, on manufacturing companies listed on the Indonesia Stock Exchange from 2019 to 2023. The data collection yielded 782 unbalanced panel datasets as the basis for the analysis. Data were collected through documentation in the form of financial and annual reports during the observation period. The results indicate that sustainability performance has a significant impact on the return on assets. The coefficient is 0.10105182 and is statistically significant at the 5% level. Innovation also affects the return on assets and gross profit margins. The coefficient is 0.02189183 and is statistically significant at the 1% level. The percentage of independent commissioners affects the gross profit margin. The coefficient is –0.01407224 and is statistically significant at the 1% level. No evidence suggests that governance, sustainability performance, or innovation affects return on equity. In general, sustainability performance and innovation are key predictors of a firm’s overall performance.

The disclosure of risk by Islamic banks is very important, as this openness of information is emphasized in Islamic teachings. The purpose of this article is to provide empirical evidence regarding the influence of the number of members of the Sharia Supervisory Board (SSB) and their cross membership, the debt and the Syirkah fund ratio (investment accounts), the composition of the board of commissioners, the number of audit committee members, and the amount of assets on risk disclosure by Indonesian Islamic banks.
The study uses content analysis techniques to measure risk disclosure by Islamic banks. The analysis uses panel data regression with observations for the period of 2010–2017. Based on the Fixed Effect Model, the study found out that the number of SSB members, the cross memberships of SSB, the ratio of independent commissioners to the number of audit committees do not influence risk disclosure. The leverage to investment account ratio does not influence risk disclosure. Also, the results of this study demonstrate that only the amount of assets influences risk disclosure.