The effect of deposit structure and ownership structure on Islamic corporate governance disclosure in Islamic banking in Indonesia and Malaysia / Hasna Katsurayya, Tettet Fitrijanti and Fury Khristianty Fitriyah

Islamic Disclosure of Corporate Governance (ICG) that is transparent and accountable is one way that can be done by the Islamic banks to show the quality of governance that they employ in order to improve the reputation of Islamic banks in the public eye. A unique characteristic of Islamic Banks in which depositors share profits with the bank is an appeal in observing the extent of its influence on the disclosure of ICG. Additionally, Islamic banks are also still prone to the agency theory, thus, the structure of ownership in Islamic banks is also a concern to see the extent of its influence on the disclosure of ICG. This study aims to determine the effect of Deposit Structure and Ownership Structure on the disclosure of Islamic Corporate Governance (ICG). Deposit Structure is proxied by the percentage of the Profit Sharing Investment Account (PSIA) to assets, while Ownership Structure used in this study is blockholder Ownership and Managerial Ownership. The method utilized in this research is descriptive and verification method with quantitative analysis approach. The population of this research is Islamic banks in Indonesia and Malaysia with a sample of 22 Islamic banks during the period 2013-2017. The analytical tool employed is the classic assumption test and panel data regression analysis to test the hypothesis t test and F. Results showed that simultaneous Profit Sharing Investment Account, Blockholder Ownership, and Managerial Ownership has significant effect on the disclosure of ICG. Partially, Profit Sharing Investment Account shows significant positive effect on the disclosure of ICG, Blockholder Ownership shows significant positive effect on the disclosure of ICG, while the Managerial Ownership does not affect the disclosure of ICG.