THE ROLE OF THE SHARIA SUPERVISORY BOARD (SSB) IN MODERATING THE EFFECT OF GOOD CORPORATE GOVERNANCE ON FINANCIAL PERFORMANCE OF ISLAMIC BANKS IN INDONESIA
AbstractPurpose â€” The aims of this research to examine and analyze the extent of the role of the sharia supervisory board (SSB) in moderating the effect of good corporate governance on the financial performance of Islamic banks in Indonesia. Â Design/methodology/approach â€” Population in this research is 14 (fourteen) Islamic banks in Indonesia and the sample used in this research is 9 (nine) Islamic banks that have published financial reports, good corporate governance reports, and annual reports for the period 2010 - 2019. This research data processed were processed using reviews-10.Findings â€” The results of this research stated that good corporate governance has a significant effect on the financial performance of Islamic banks. The sharia supervisory board (SSB) moderates the effect of good corporate governance on the financial performance of Islamic banks in Indonesia.Practical Implications â€” The chow test stated chosen model as fixed effects, then the Housman test stated chosen model as random effects. Thus the model used in this research is a random effect.Originality/value â€” To complete the results, this research used in-depth interviews with practitioners of Islamic banks in Indonesia, specifically the departement of compliance with Islamic banks.Keywords Good corporate governance, ShariaÂ Supervisory Board, financialÂ performancePaper Type Research Paper.
Ahmed, E. & Hamdan, A. (2015). The Impact of Corporate Governance on Firm Performance: Evidence From Bahrain Bourse. . International Management Review, 11(2), 21-37.
Agustina.L., Suryandari. D., Oktarina. N., & Arief. S. (2015). The Influence of Good corporate governance Mechanisms to Financial Performance with Corporate Social Responsibility as an Intervening Variable. International Journal of the Computer, the Internet and Management. 23(1),24-29.
Asrori. (2014). Implementasi Islamic Corporate Governance dan Implikasinya Terhadap Kinerja Bank Syariah. Jurnal Dinamika Akuntansi, 6(1), 90-102.
Ausat, S. A.A. (2018). The Relationship Between Corporate Governance And Financial Performance In Islamic Banks. Jurnal Ekonomi & Studi Pembangunan, 19(2), 91-100. DOI: 10.18196/jesp.19.2.5001
Badawi, A. (2018). Pengaruh Good Corporate Governance Dan Intellectual Capital Terhadap Kinerja Keuangan Perusahaan Pada Perbankan Indonesia (Studi Empiris Di Bursa Efek Indonesia Tahun 2015-2017), Jurnal JDM (Jurnal Doktor Manajemen), 1(2), 74-86.
Cadbury Committee. (1992). Report of the Committee on the Financial Aspects of Corporate Governance. London: Gee.
Chariri & Ghozali, I. (2007). Teori Akuntansi. Semarang : Badan Penerbit Universitas Diponegoro.
Darwanto & Chariri. (2019). Corporate Governance And Financial Performance In Islamic Banks: The Role Of The Sharia Supervisory Board In Multiple-Layer Management. Investment Management and Financial Innovations, 14(4), 183-191. http://dx.doi.org/10.21511/bbs.14(4).2019.17.
Fahmi, I. (2012). Analisis Kinerja Keuangan , Bandung: Alfabeta
Forum For Corporate governance in Indonesia (FCGI). (2010). Corporate Governance:Tata Kelola Perusahaan. Edisi Ke tiga. Jakarta: Prentice Hall
Ghaffar. (2014). Corporate Governance and Profitability of Islamic Banks Operating in Pakistan. Interdisciplinary Journal of Contemporary Research in Business (IJCRB). 6(6), 320 â€“ 336.
Haider, K. & Iqbal. (2015). Impact of corporate Governance on Firm Financial Performance in Islamic Financial Institution.International Letters of Social and Humanistic Sciences, 51(51) 106-110. DOI: https://doi.org/10.18052/www.scipress.com/ILSHS.51.106
Ibrahim, E. A. (2017). The Impact of Corporate Governance on Islamic Banking Performance: The Case of UAE Islamic Banks. Journal of Banking & Finance (IJBAF), 2017(9), 1-10. DOI: 10.5281/zenodo.889020.
Inam & Mukhar. (2014). Corporate governance and its impact on performance of banking sector in Pakistan. International Journal of Information, Business and Management, 6(3). 106-117.
Lukas, S. & Basuki,B. (2015). The Implementation Of Good corporate governance And Its Impact On The Financial Performance Of Banking Industry Listed In IDX. The International Journal Of Accounting And Business Society, 23(1), 47-72.
Mahrani, M. & Soewarno, N. (2018). The effect of good corporate governance mechanism and corporate social responsibility on financial performance with earnings management as mediating variable. Asian Journal of Accounting Research, 3(1), 41-60. DOI 10.1108/AJAR-06-2018-0008
Mushtaq, Y., Umair.A., & Naveed. (2018). Impact Of Corporate Governance Of Islamic Bank Of Financial Performance: A Study Of Pakistan, India and Bangladesh Islamic Banking System. Iqra journal of business & management (IJBM,), 2(1), 11-21.
Organization for Economic Cooperation and Development. (2004). OECD Principles of Corporate Governance. The OECD Paris.
Paul, G.D., Emesuanwu, C.E., & Shammah, Y. (2015) Impact of Corporate Governance on Financial Performance of Microfinance Bank in North Central Nigeria. International Journal of Humanities Social and Education (IJHSSE), 2(1), 153-170.
Peraturan Bank Indonesia (PBI) No. 11/33/PBI/2009 tentang Pelaksanaan Good Corprate Governance Bagi Bank Umum Syariah dan Unit Usaha Syariah.
Prasojo. (2015). Pengaruh Penerapan Good corporate governance Terhadap Kinerja Keuangan Bank Syariah. Jurnal Dinamika Akuntansi Dan Bisnis, 2(1), 59-69.
Putra, A. & Simanungkalit, R. M. (2014). The Impact of Implementation Good corporate governance to Firm Value (Evidence from Indonesia Public Banking Sector). Review of Integrative Business & Economics Research, 4(1), 95-102.
Rahayu. R., Syarifuddin, R. & Sabir. (2019) The Effect of Sharia Supervisory Board on Financial Performance, with Islamic Social Reporting as the Intervening Variable. Quest Journals Journal of Research in Business and Management, 7(1), 69-72.
Rama, A. & Novela, Y. (2015). Shariah Governance dan Kuaitas Tata Kelola Perbankan Syariah. Signifikan, 4(2), 111-126.
Rehman & Mangla. (2012). Does Corporate Governance Influence Banking Performance? Journal of Leadership, Accountability and Ethics, 9(3), 86-92.
Rivai, V. & Arifin, A. (2010). Islamic Banking Sebuah Teori, Konsep, dan Aplikasi. Jakarta : Bumi Aksara
Setyani, N. H. (2012). Implementasi Prinsip Good corporate governance Pada Perbankan Syariah di Indonesia. Jurnal Economica, 2(2), 43-56.
Siswanti, I. (2016). Implementasi Good corporate governance Pada Kinerja Bank Syariah. Jurnal Akuntansi Multiparadgm, 7(1), 307 â€“ 321.
Siswanti, I., Salim, U., Sukoharsono, E.G., & Asijah, S. (2017). A Sustainable Business Model in Islamic Bank (Review of the Scientific Literature). Research Journal of Finance and Accounting. 8(2), 23-28.
Siswanti,I., Salim, U., Sukoharsono, E.G., & Asijah, S. (2017). Sustainable Business of Islamic Bank Through on the Islamic Corporate Governance and Islamic Financial Performance. Journal of Financeand Banking Review. 2 (2), 15 â€“ 20.
Siswanti,I., Salim, U., Sukoharsono, E.G., & Asijah, S. (2017). The Impact of Islamic Corporate Governance, Islamic Intellectual Capital and Islamic Financial Performance on Sustainable Business Islamic Banks. International Journal of Economics and Financial Issues (IJEFI), 7(4), 316-323.
Surat Edaran Bank Indonesia No. 12/13/DPbS/2010-Pelaksanaan Good corporate governance bagi Bank Umum Syariah dan Unit Usaha Syariah.
Taufik, T. ( 2016). Mediasi Profitabilitas Pada Hubungan Antara Good corporate governance Dan Firm Size Terhadap Corporate Social Responsibility. MIX: Jurnal Ilmiah Manajemen, 6 (3), 399-415
Vo, D., & Nguyen, T.M. (2014). The Impact of Corporate Governanceon Firm Performance: Empirical Study in Vietnam. International Journal of Economics and Finance, 6(6), 1-13. DOI: 10.5539/ijef.v6n6p1
Zaman, R., Arsian, M. & Siddiqui, M.A. (2015). Corporate Governance and Firm Performance: The Role of Transparency & Disclosure in Banking Sector of Pakistan. International Letters of Social and Humanistic Sciences, 43, 152-166. DOI: https://doi.org/10.18052/www.scipress.com/ILSHS.43.152
How to Cite
Copyright (c) 2021 The International Journal of Accounting and Business Society
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors who publish with this journal agree to the following terms:
1. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).