Integration of Corporate Governance and Social as a Catalyst for Islamic Banking Financial Performance; Evidence in Indonesia

Corporate governance can be assessed from how the company has been run openly and transparently, to gain public trust in market mechanisms. Islamic banking in Indonesia shows a pattern that social activities are an obligation that must be carried out. Social is a characteristic of Indonesian banking...

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Bibliographic Details
Published in:Indonesian Journal of Business Analytics 2024-08, Vol.4 (4), p.1450-1481
Main Authors: Sri Anugrah Natalina, Grahita Chandrarin, Maxion Sumtaxy, Rofik Efendi, Yuliani, Dijan Novia Saka
Format: Article
Language:English
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Summary:Corporate governance can be assessed from how the company has been run openly and transparently, to gain public trust in market mechanisms. Islamic banking in Indonesia shows a pattern that social activities are an obligation that must be carried out. Social is a characteristic of Indonesian banking, a financial institution that has implemented the concept of sharia. In this study, the sample used amounted to 132 data on BUS's financial statements for 11 years from 2010-2020. As a result, improved governance, actually led to a decline in financial performance, by the regression value of -0.1682. Meanwhile, the social variable shows that if social performance increases, financial performance also increases by 0.282.
ISSN:2808-0718
2808-0718
DOI:10.55927/ijba.v4i4.10233