Factors Influencing Islamic Social Reporting in Indonesian Sharia Banking Compliance

Authors

  • Fatima Az-zahra Wairooy Institut Agama Islam Negeri Sorong
  • Zaimudin Al-Mahdi Mokan Istanbul Sabahattin Zaim University
  • St. Umrah Institut Agama Islam Negeri Sorong

DOI:

https://doi.org/10.21111/jiep.v6i4.11612

Keywords:

Halal Lifestyle, Islamic Corporate Governance, Islamic Social Reporting, Sharia Financial Performance

Abstract

The rapid development of Islamic banks certainly urges researchers to reveal secrets, especially those relating to financial performance (FP), governance, and disclosures from companies or institutions, whether they are in accordance with halal standards or vice versa. This research aims to assess the suitability of halal standards. in the sharia banking industry sector, apart from that, in principle, when a bank has a high value of non-halal income, it can be predicted that the bank will still have high interest-based debt, and vice versa, All Syrian Commercial Banks registered with the OJK in 2014-2021 constitute the research population. 96 samples were collected from 12 BUS using purposive sampling. The findings show that the indicator of Halal Life Style, namely Non-Halal Income (X1), has no effect on ISR disclosure, while the Sharia Financial Performance indicator consisting of FDR (X3), CAR (X4), and DER (X5) has no effect on ISR disclosure (Y), while ROA (X2) influences ISR disclosure (Y). The result of this research show that companies in the halal industrial sector, especially Sharia Commercial Banks in Indonesia, are still lacking in paying attention to and minimizing non-halal income as well as other indicators such as FDR, CAR, and DER.

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Published

2024-05-22

Issue

Vol. 6 No. 4 (2024): May

Section

Articles