JIFA (Journal of Islamic Finance and Accounting)

Unlocking Firm Value through Green Accounting: Insights from the Energy Industry

Alberti Listia Tri Mawarni, Estetika Mutiara Kurniawati — Fri, 29 Nov 2024 00:00:00 +0700

This study aims to assess the impact of green accounting on the firm value of energy sector companies listed on the Indonesia Stock Exchange (IDX). This research employs a quantitative methodology utilizing purposive sampling. The research focuses on companies engaged in the Environmental Performance Rating Program (PROPER). The data sample comprises 28 companies from the energy sector spanning the years 2018 to 2022. The independent variable in this study is green accounting, assessed through environmental cost, environmental disclosure, environmental performance, and environmental committee. The dependent variable is the firm's value as indicated by Tobin's Q formula. This study employs multiple linear regression analysis utilizing the SPSS Statistics 26 software. This study's findings demonstrate that environmental costs and scores do not influence firm value. Nonetheless, environmental performance and the environmental committee positively impact firm value. We expect this research to illuminate the importance and effectiveness of green accounting in sustainability reports, allowing companies to improve their social and environmental accountability through the adoption of environmental management programs.

Islamic banking in Indonesia and Malaysia: Comparative insights into sharia compliance, profitability, and governance

Dini Lestary, Aulia Azimi, Fitri Jayanti, Samsul Hidayat — Mon, 27 Jan 2025 00:00:00 +0700

The growing prominence of Islamic banks in Southeast Asia highlights the importance of understanding their financial performance to maintain public trust and enhance competitiveness. This research aims to compare the financial performance of Islamic commercial banks (BUS) in Indonesia and Malaysia by employing the Sharia Conformity and Profitability (SCnP) method and analyzing the application of the Islamic Corporate Governance (ICG) index. Using a quantitative descriptive approach, the study utilizes financial performance data from the 2021-2022 annual reports of selected banks. The SCnP method categorizes Sharia banks into four quadrants: Upper Right Quadrant (URQ), Lower Right Quadrant (LRQ), Upper Left Quadrant (ULQ), and Lower Left Quadrant (LLQ). Results indicate that Bank BCA Syariah (BCAS), Bank Syariah Indonesia (BSI), and National Pension Savings Bank (BTPNS) demonstrate superior performance, as they are positioned in the URQ. Additionally, the ICG analysis reveals that Bank Muamalat Malaysia Berhad (BMMB) achieves the highest governance index score at 62%, followed by BCAS from Indonesia at 56%. These findings provide valuable insights for policymakers and bank managers, emphasizing the critical role of governance and Sharia compliance in driving the success of Islamic banks in the region

Islamic banking risk management: Trends and insights from a bibliometric and SLR approach

Nuzulia Nuzulia, Roisatun Kasanah — Thu, 28 Nov 2024 00:00:00 +0700

Along with the growth of Islamic banking, risk management is an essential element that must be managed properly because it is one of the potential financial institutions. This study aims to see trends and analyze the development of research on risk management in Islamic banking by reviewing the literature through bibliometric methods and systematic literature review (S.L.R.). The findings of this study are the number of articles related to Islamic banking risks that have been carried out from 2002 to 2022, with a total of 372 articles. Based on the analysis, it can be seen that the number of articles published increased and peaked in 2018. Operational risk and risk management practices keywords are the least numerous. This result showed that Islamic banking has different characteristics than conventional banking, including financial risk and non-financial risk, thus requiring a different regulatory approach in the mitigation and stabilization process. Furthermore, this study highlights gaps in the literature, such as the limited focus on operational risks, and offers a comprehensive framework for understanding risk management practices in Islamic banking. These findings contribute to theoretical advancements by emphasizing the need for regulatory frameworks tailored to the unique characteristics of Islamic banking, filling a critical gap in existing research.

Sharia Accounting Decision Making Model Moderated by Company Culture

Erwin Jafar — Thu, 30 Jan 2025 00:00:00 +0700

This research aims to determine the influence of cognitive bias and heuristic bias on sharia accounting decision making moderated by company culture. This research refers to a Quantitative Approach to the Population of Company Stakeholders in Indonesia. Determination of the sample using purportive sampling technique. Data processing uses the questionnaire method. Respondents in this research are company stakeholders in Indonesia. Data analysis uses Structural Equation Analysis (SEM), the Measurement Model is used to test Validity and Reliability. Research Results Show that 1) Cognitive Bias has no effect on Sharia Accounting Decision Making 2) Moderation by Corporate Culture has an effect on Sharia Accounting Decision Making 3) Heuristic Bias has no effect on Sharia Accounting Decision Making 4) Moderation by Company Culture and Heuristic Bias has no effect on Sharia Accounting Decision Making 5) Moderation by company culture and Cognitive Bias has an effect on Sharia Accounting Decision Making.

Restoring the spirit of [accounting] education using Al-Attas' and Al-Faruqi's thoughts

Ari Febriansyah, Krisno Septyan — Fri, 29 Nov 2024 00:00:00 +0700

Current accounting education is inseparable from the idea of secularism, which can mislead the actual goals of [accounting] education. This study aims to offer civilized accounting education to free students [accounting] from secularism. The method used is the thoughts of Syed Naquib al-Attas and Ismail Raji al-Faruqi, which are sourced from the ontological synchronicity research method between researchers and thinkers. The results of this study state that to form a civilized accounting education concept, three steps can be taken, namely 1) making the Qur'an the basis and pinnacle of science, 2) Islamization of science, and 3) Integrating Islamic science into the accounting education curriculum. The ideas of previous thinkers regarding the dignity of science became the source of the formation of a more civilized accounting education concept. This study can answer the concerns about current accounting education by implementing adab as the formation of accountant character so that, in practice, later accountants can carry out their roles as humans who obey Allah SWT

Enhancing ZIS management through marketplace platforms: Opportunities and sharia compliance challenges

Syarifuddin, Afif Zaerofi — Sat, 28 Dec 2024 00:00:00 +0700

Zakat Institutions and marketplace platforms have established a collaboration to adapt to the growing shift toward digital transaction patterns in managing Zakat, Infaq, and Shadaqah (ZIS). Marketplaces offer convenience in ZIS collection, while LAZ ensures Sharia compliance in fund management. This study highlights how such collaboration significantly expands the reach of ZIS collection, presenting immense potential, but also identifies challenges in ensuring Sharia compliance and accountability. The research employs a qualitative methodology to explore the dynamics of the collaboration between Zakat Institutions and marketplace platforms. Thematic analysis was applied to identify key themes related to the opportunities and challenges of the collaboration. The research contributes to the understanding of digital platforms' role in faith-based financial management, offering practical insights for enhancing cooperation between LAZ and marketplaces. It emphasizes the need for dialogue, public education about ZIS and qurban, and system adjustments to ensure Sharia compliance. The findings have practical implications for improving digital ZIS management through enhanced accountability and regulatory frameworks, making this collaboration a model for leveraging technology in religious fund management