THE ROLE OF THE SHARIA SUPERVISORY BOARD AND THE SIZE OF ISLAMIC BANK ON THE PERFORMANCE OF SHARIA BANKS IN INDONESIA
DOI:
https://doi.org/10.22515/jmif.v3i1.5300Keywords:
Characteristics of SSB, size of SSB, Concurrent Position of SSB, SB Meetings and Educational Background of SSB, Size of Islamic Banks, Performance of Islamic banksAbstract
This study aims to examine the role of the Sharia Supervisory Board and the size of Islamic banks on the performance of Islamic Commercial Banks in Indonesia. The characteristics of the Sharia Supervisory Board (SSB) are proxied by the variables of the size of the SSB, Concurrent Positions of the SSB, the Meetings of the SSB and the Educational Background of the SSB. This study used panel data of Islamic commercial banks from 2015 to 2020 using purposive sampling. The data analysis technique used panel data regression through the common effect model using the software views. The test results show that the variables of SSB concurrent positions, SSB meetings, educational background SSB and the size of the bank significantly affect the performance of Islamic commercial banks. Meanwhile, the size of the SSB have no effect on the performance of Islamic commercial banks. Multiple positions have a positive effect on the direction of the relationship, while the SSB meeting and SSB educational background have a negative effect on the performance of Islamic commercial banks.
References
Abdullah, H., & Valentine, B. (2009). Fundamental and Ethics Theories of Corporate Governance. Middle Eastern Finance and Economics, 4(4), 88–96.
Abdullah, W. A. W., Percy, M., & Stewart, J. (2015). Determinants of Voluntary Corporate Governance Disclosure : Evidence from Islamic. Journal of Contemporary Accounting & Economics, 1–42. https://doi.org/10.1016/j.jcae.2015.10.001
Ahmed, E. R., Islam, M. A., & Zuqibeh, A. (2013). The Role of Shariah Supervisory Board in the Reviewing and Supervision on Takaful ( Islamic Insurance ),. Insurance and Takaful Journal (INTAJ).
Ahmed, H. (2014). Islamic Banking and Shari’ah Compliance: A Product Development Perspective. Journal of Islamic Finance, 3(2), 15–29.
Aisyah, S., Mai, M. U., & Suhartanto, D. (2022). Karakteristik dewan terhadap kinerja bank syariah di Indonesia dan Malaysia. Jurnal Tabarru’ : Islamic Banking and Finance, 5(November), 291–299.
Alsartawi, A. M. (2019). Performance of Islamic banks Do the frequency of Shar ī ʿah supervisory board. ISRA International Journal of Islamic Finance, 11(2), 303–321. https://doi.org/10.1108/IJIF-05-2018-0054
Awo, J. P., Akotey, J. O., & Awo, J. P. (2019). The financial performance of rural banks in Ghana The generalized method of moments approach. World Journal of Entrepreneurship, Management and Sustainable Development, 15(1), 2–18. https://doi.org/10.1108/WJEMSD-02-2018-0012
Bakar, A. (2013). Islamic banks’ financing behaviour: A pilot study. In Islamic Banking and Financial Crisis: Reputation, Stability and Risks (pp. 87–105).
Banaga, A., Ray, G. H., & Tomkins, C. R. (1994). External audit and corporate governance in Islamic banks: a joint practitioner-academic research study (E. Avebury, Hants (ed.)).
Farida, A., Sasongko, N., & Bawono, A. B. (2019). Pengaruh Karakteristik Islamic Corporate Governance, Intellectual Capital Dan Keputusan Pendanaan terhadap kinerja Keuangan. The 9 Th University Research Colloqium 2019 Universitas Muhammadiyah Purworejo.
Farook, S., & Lanis, R. (2011). Determinants of corporate social responsibility disclosure: the case of Islamic banks. Journal of Islamic Accounting and Business Research, 2(2), 114–141. https://doi.org/10.1108/17590811111170539
Garas, S. N. (2013). The control of the Shari ’ a Supervisory Board in the Islamic financial institutions. International Journal of Islamic and Middle Eastern Finance and Management, 5(1), 824. https://doi.org/10.1108/17538391211216794
Garas, S. N., & Pierce, C. (2010). The Independence Of The Shari ’ A Supervisory Board In The Islamic Financial Institutions Of The GCC Countries. Corporate Board: Role, Duties & Composition, 6(2), 20–34.
Grais, W., & Pellegrini, M. (2006). Corporate Governance And Shariah Compliance In Institutions Offering Islamic Financial Services.
Hamza, H. (2015). Borsa Istanbul Review Does investment deposit return in Islamic banks reflect PLS principle ? Borsa Istanbul Review. https://doi.org/10.1016/j.bir.2015.12.001
Han, H., Koo, B., Chua, B., Sul, H., & Jenny, J. (2020). Travelers ’ intentions for green behaviors at airports: Exploring the effect of green physical surroundings using mixed methods. Journal of Hospitality and Tourism Management, 45, 569–579.
Herawati, Y. H. (2021). Analisis Pengaruh CAR dan SIZE terhadap FDR serta Implikasinya terhadap Kinerja Perbankan Syariah di Indonesia Analysis of the effect of CAR and SIZE on FDR and their implications on the performance of Islamic banking in Indonesia. Journal of Applied Islamic Economics and Finance, 2(1), 141–150. https://doi.org/10.35313/jaief.v2i1.2888
Kasim, N., Sanusi, Z. M., Mutamimah, T., & Handoyo, S. (2013). Assessing the current practice of Auditing in Islamic Financial Institutions in Malaysia and Indonesia. International Journal of Trade, Economics and Finance, 4(6), 414–418. https://doi.org/10.7763/IJTEF.2013.V4.328
Mollah, S., & Zaman, M. (2015). Shariah supervision, corporate governance and performance: conventional vs. islamic banks. Journal of Banking & Finance, 58, 418435. https://doi.org/10.1016/j.jbankfin.2015.04.030
Nugroho, A. (2020). Studi efektivitas dewan pengawas syariah terhadap profitabilitas dan resiko pembiayaan perbankan Syariah. Proceeding of National Conference on Accounting & Finance, 2(2010), 60–68. https://doi.org/10.20885/ncaf.vol2.art6
Rahman, A. A., & Bukair, A. A. (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, 6(2), 65–104.
Sugiyono. (2014). Metode Penelitian Kualitatif, Kuantitatif, dam R&D. Alfabeta.
Sulistyawati, A. I., Ati, H., & Santoso, A. (2020). Telisik Faktor Pengaruh Kinerja Maqashid Syariah Bank Syariah Di Indonesia. Jurnal Ilmiah Ekonomi Islam, 6(2), 142–150.
Umiyati, & Baiquni, M. D. (2018). Ukuran Perusahaan , Profitabilitas, Dan Leverage Terhadap Islamic Social Reporting Pada Bank Umum Syariah Di Indonesia. Jurnal Akuntansi Dan Keuangan Islam, 6(1), 85–104.
Vafeas, N. (1999). Board meeting frequency and " firm performance. Journal of Financial Economics, 53, 113–142.
Downloads
Published
Issue
Section
License
Copyright (c) 2023 Muhamad Bayu
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- 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 acknowledgement of the work's authorship and initial publication in this journal.
- 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 acknowledgement of its initial publication in this journal.
- 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.
