The Effect of Corporate Governance on Financial Performance: Evidence from Islamic Banks in Indonesia
- 10.2991/aer.k.201221.098How to use a DOI?
- Corporate Governance, Return on Asset, Economic Value Added
This study aims to examine the effect of corporate governance on financial performance of Islamic banking in Indonesia. Corporate governance mechanism determined by board of director, independent commissioner, and sharia supervisory board, meanwhile the financial performance is calculated by using Return on Assets (ROA) and Economic Value Added (EVA). The data were collected from each bank’s annual report in a period 2014-2018, thus 9 Islamic Banks were taken by purposive sampling. The analysis method is path analysis and applied by WarpPLS 6.0 tool. This study reveals that board of director had significant influence to ROA, however independent commissioner and sharia supervisory board had no significant influence to ROA, on the other hand only independent commissioner and ROA had significant influence to EVA. The findings can be a consideration for banking management to control financial performance, by improving good corporate governance therefore the financial performance will increase.
- © 2020, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Hamas Askar Islami AU - Iwan Setiawan AU - M Umar Mai PY - 2020 DA - 2020/12/22 TI - The Effect of Corporate Governance on Financial Performance: Evidence from Islamic Banks in Indonesia BT - Proceedings of the International Seminar of Science and Applied Technology (ISSAT 2020) PB - Atlantis Press SP - 605 EP - 612 SN - 2352-5401 UR - https://doi.org/10.2991/aer.k.201221.098 DO - 10.2991/aer.k.201221.098 ID - Islami2020 ER -