THE INFLUENCE OF FINANCIAL PERFORMANCE AND NON FINANCIAL PERFORMANCE ON ISLAMIC CORPORATE SOCIAL RESPONSIBILITY DISCLOSURE: EVIDENCE FROM THE ISLAMIC BANKS IN INDONESIA
DOI:
https://doi.org/10.21776/ub.ijabs.2018.26.2.4Abstract
The purpose of this study is to examine the influence of Financial Performance and Non Financial Performance on Islamic Social Responsibility Disclosure of the Islamic Banks in Indonesia. The sample used is 5 banks. The data in this study are secondary data, consists of annual reports of the Islamic banks for the periods of 2010 to 2017. The analysis technique used is panel data regression. The results of fixed effect model state that duties and responsibilities of sharia supervisory board, compliance sharia principles have a significant influence on Islamic Corporate Social Responsibility disclosure, where as financial performance does not influence on  Islamic Corporate Social Responsibility disclosure.
Â
Keywords: Corporate Social Responsibility, Social Islamic Reporting, Financial Performance, and Islamic Corporate Social Responsibility Disclosure
References
Accounting & Auditing Organization for Islamic Financial Institution(AAOIFI). (2010). Financial Accounting Standart No.9 (FAS 9): Zakah, Accounting and Auditing Organization for Islamic Financial Institutions. Bahrain.
Alsaadi, Abdullah., Ebrahim, M.S. and Jaafar, A. (2016), Corporate Social Responsibility, Shariah-Compliance, and Earnings Quality. Journal of financial services research. Vol. 51(2), 169-194.
Aribi, Z. A. & Gao, S. (2010). Corporate Social Responsibility Disclosure: A Comparison between Islamic and Conventional Financial Institutions. Journal of Financial Reporting and Accounting. Vol. 8(2), 72-91.
Asrori. (2011). Pengungkapan Syari’ah Compliance dan Kepatuhan Bank Syariah Terhadap Prinsip Syariah (disclousure compliance of syariah and compliance of Islamic Banks on sharia principles). Jurnal Dinamika Akuntansi. Vol. 3 (1), 1-7.
Basah, M. Y. A, & M. Md Yusuf. (2013). Islamic Bank and Corporate Social Responsibility (CSR). ESBM-special Issue: Islamic Management and Business. Vol. 5(11), 194-209.
Deegan, Craig. (2002). Introduction: The Legitimising Effect of Social and Environmental Disclosure – A Theoritical Foundation. Accounting, Auditing, and Accountability Journal.Vol.5(3), 282-311.
Dilling. (2009). Sustainability Reporting In A Global Context: What Are The Characteristics of Corporations That Provide High Quality Sustainability Reports – An Empirical Analysis. International Business & Economics Research Journal. Vol.9(1), 19-30.
Dowling, J. and Pfeffer, J. (1975). Organizational Legitimacy: Social Values And Organizational Behavior. Pacific Sociological Journal Review. Vol.18 (1), 122-136.
El Hussein, Nawal Hussein Abbas (2018). The Sharia Supervisory Board: Does it Influence Corporate Social Responsibility Disclosure by Islamic Banks? A Review. Journal of Islamic Studies and Culture. Vol. 6(1), 121-132.
Farook, Sayd. (2007). On Corporate Social Responsibility of Islamic Financial Institutions. Islamic Economies Studies. Vol.15(1), 31-46.
Freeman, R. Edward dan John Mc Vea. (2001). A Stakeholder Approach to Strategic Management. Darden Business School Working Paper. No. 01- 02.
Ghozali, Imam and Anis, Chariri. (2014). Teori Akuntansi (Accounting Theory). Semarang: Badan Penerbit Universitas Diponegoro.
Haniffa, Roszaini, and Muhammad, Hudaib. (2007). Exploring the Ethical Identity if Islamic Bank via Communication in Annual Reports. Journal of Business Ethics. Vol.76, 97-116.
Inuzula, Lakharis., Basri, Hasan., and Shabri. (2015). Peran Dewan Pengawas Syariah dan Dewan komisaris Dalam Mengungkapkan Islmaic Social Reporting Pada Bank Umum Syariah di Indonesia (The Role of Sharia Supervisory Board and Board of Commissioners in Islamic Social Reporting Disclosure Islamic Banks in Indonesia). Jurnal Magister Akuntansi. Vol. 4(4), 68-78.
Jumingan. (2006). Analisis Laporan Keuangan. Jakarta: Bumi Aksara.
Khasanah, Zayyinatul., and Agung, Yulianto. (2015). Islamic Corportae Governance dan Pengungkapan Islamic Social Repoting Pada Bank Umum Syariah (Islamic Corporate Governance and Islamic Social Reporting Islamic Disclosure Banks in Indonesia). Accounting Analysis Journal. Vol. 4(4), 1-10.
Khoirudin, Amirul. (2013). Corporate Governance dan Pengungkapan Islamic Social Reporting Pada Perbankan Syariah di Indonesia (Corporate Governance and Islamic Social Reporting Disclosure Islamic Banks in Indonesia). Accounting Analysis Journal. Vol.2 (2), 227-232.
Lestari, Puji. (2013). Determinants of Islamic Social Reporting in Syariah Banks: Case of Indonesia. International Jurnal of Business and Management Invention. Vol. 2(10), 28–34.
Maskun, Ali. (2013). Leverage level, company size, profitability toward the disclosure of Corporate Social Responsibility (CSR) of LQ-45 companies in Indonesia stock xchange. International Journal of Academic Research. Vol. 5(2), 140-144.
Nawaiseh, Mohammad. (2015). Do Firm Size and Financial Performance Affect Corporate Social Responsibility Disclosure: Employees’ and Environmental Dimensions? American Journal of Applied Sciences. Vol.12(12), 967-981.
Ningrum, R.A., and Fachrurrozie PYJ. (2013). Pengaruh Kinerja Keuangan, Kepemilikan Institusional dan Ukuran Dewan Pengawas Syariah Terhadap Pengungkapan Islamic Social Responsibility (Effect of Financial Performance, Institutional Ownership and Size of Sharia Supervisory Board on Disclosure of Islamic Social Responsibility.) Accounting Analysis Journal. Vol. 2(4), 430-438.
O’Donovan, Garry. (2002). Environmental Disclosure in The Annual Report: Extending The Applicability and Predictive Power of Legitimacy Theory. Accounting, Auditing, and accountability Journal. Vol. 15(3), 344-371.
Othman, Rohana. (2009). Determinants of Islamic Social Reporting Among Top Sharia-Approved Companies in Bursa Malaysia. Research Journal of Internasional Studies. Vol. 12, 4-20.
Surat Edaran Otoritas Jasa Keuangan No.14/SEOJK.03/2017 tentang Penilaian Tingkat Kesehatan Bank Umum
Peraturan Bank Indoenesia No. 11/33/PBI/2009. Tentang Pelaksanaan Good Corporate Governance Bagi Bank Umum Syariah dan Unit Usaha Syariah.
Rahman, Azhar Abdul and Bukair, Abdullah Awadh. (2013), The Influence of the Shariah Supervision Board on Corporate Social Responsibility Disclosure by Islamic Banks of Gulf Co-Operation Council Countries. Asian Journal of Business and Accounting.Vol. 6(2), 65-104.
Riyadi, Selamet (2006). Banking Assets and Liability Management, Edisi Ketiga. Jakarta: Fakultas Ekonomi Universitas Indonesia.
Siswanti, Indra., Ubud Salim., Eko Ganis Sukoharsono., and Siti Aisjah. (2017). Sustainable Business of Islamic Bank Through on the Islamic Corporate Governance and Islamic Financial Performane. Journal Finance & Banking Review. Vol.2(2), 15-23.
Siswanti, Indra., Ubud Salim., Eko Ganis Sukoharsono., and Siti Aisjah. (2017) The Impact of Islamic Corporate Governance, Islamic Intellectual Capital and Islamic Financial Performance on Sustainable Business Islamic Banks. International Journal Economics and Financial Issues. Vol.7(4), 316-323.
Surat Edaran Bank Indonesia No. 12/12/DPbS/2010-Pelaksanaan Good Corprate Governance bagi Bank Umum Syaria dan Unit Usaha Syariah.
Sutrisno. (2009). Manajemen Keuangan Teori, Konsep dan Aplikasi, Edisi Pertama, Cetakan Ketujuh, Penerbit Ekonisia, Yogyakarta.
Downloads
Published
How to Cite
Issue
Section
License
The copyright of the received article shall be assigned to the journal as the publisher of the journal. The intended copyright includes the right to publish the article in various forms (including reprints). The journal maintains the publishing rights to the published articles.
