Proceedings of the 4th Borobudur International Symposium on Humanities and Social Science 2022 (BIS-HSS 2022)

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Islamic Corporate Governance and Sharia Compliance on Financial Performance

Authors
Farida1, *, Muji Mranani1
1Department of Accounting, Universitas Muhammadiyah Magelang, Magelang, Indonesia
*Corresponding author. Email: farida_feb@unimma.ac.id
Corresponding Author
Farida
Available Online 10 October 2023.
DOI
10.2991/978-2-38476-118-0_178How to use a DOI?
Keywords
Financial Performance; Islamic Corporate Governance; Sharia Compliance
Abstract

The financial performance of the Sharia industry has increased during unfavorable economic times due to the Covid-19 pandemic. The increase in financial performance, especially in Islamic banking, shows that company management is generally running well, but the high financial performance of Islamic banking does not necessarily meet the level of Sharia compliance. Sharia compliance is the level of compliance with company operations based on Sharia principles. This study aims to examine and analyze the influence of Islamic Corporate Governance (ICG) and sharia compliance on financial performance. The population in this study is Islamic banking in Indonesia, with the category of Islamic Commercial Banks (BUS). The sample criteria are BUS that publish annual reports and Good Corporate Governance reports for 5 consecutive years 2015-2019. The analytical method used is multiple regression analysis. The results of the study show that ICG and sharia compliance from the Profit-Sharing indicator have a positive effect on financial performance. The results of the study show that sharia compliance with the Islamic Income and Equitable Distribution indicators has no effect on financial performance. This research has implications for Islamic banking to pay attention to aspects of sharia compliance in achieving company goals, so as to create corporate governance that is in accordance with Sharia principles.

Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 4th Borobudur International Symposium on Humanities and Social Science 2022 (BIS-HSS 2022)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
10 October 2023
ISBN
10.2991/978-2-38476-118-0_178
ISSN
2352-5398
DOI
10.2991/978-2-38476-118-0_178How to use a DOI?
Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Farida
AU  - Muji Mranani
PY  - 2023
DA  - 2023/10/10
TI  - Islamic Corporate Governance and Sharia Compliance on Financial Performance
BT  - Proceedings of the 4th Borobudur International Symposium on Humanities and Social Science 2022 (BIS-HSS 2022)
PB  - Atlantis Press
SP  - 1571
EP  - 1577
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-118-0_178
DO  - 10.2991/978-2-38476-118-0_178
ID  - 2023
ER  -