Does sharia compliance affect Islamic Banks performance? Evidence from Islamic Banks in Indonesia / Inten Meutiaa, Mohamad Adam and Rulyanti Susi Wardhani

Meutiaa, Inten and Adam, Mohamad and Wardhani, Rulyanti Susi (2019) Does sharia compliance affect Islamic Banks performance? Evidence from Islamic Banks in Indonesia / Inten Meutiaa, Mohamad Adam and Rulyanti Susi Wardhani. Journal of Emerging Economies & Islamic Research, 7 (3). pp. 1-14. ISSN 2289-2559

Abstract

Sharia compliance is essential for Islamic financial institutions. This study has two objectives, namely, to determine the level of sharia compliance in Islamic banks in Indonesia, as well as to prove whether sharia compliance affects the performance of Islamic banks in Indonesia. To prove this, the researcher observed the annual report of 11 Islamic banks in Indonesia for the period 2012 to 2016. Sharia compliance is measured through the level of sharia governance in Islamic banks. Sharia governance instruments used to refer to Hasan (2011). While ROA and ROE measure the performance of Islamic banks, content analysis is used to identify sharia governance disclosures in annual reports. The study revealed that on average, the level of sharia compliance of Islamic bank in Indonesia is at the level of best practice while the results of statistical tests prove that there is no significant effect sharia compliance on the performance of Islamic banks both measured by ROA and ROE.

Metadata

Item Type: Article
Creators:
Creators
Email / ID Num.
Meutiaa, Inten
UNSPECIFIED
Adam, Mohamad
UNSPECIFIED
Wardhani, Rulyanti Susi
UNSPECIFIED
Subjects: H Social Sciences > HG Finance
H Social Sciences > HJ Public Finance
H Social Sciences > HJ Public Finance > Finance, Islamic
Divisions: Universiti Teknologi MARA, Selangor > Puncak Alam Campus > Faculty of Business and Management
Journal or Publication Title: Journal of Emerging Economies & Islamic Research
UiTM Journal Collections: UiTM Journal > Journal of Emerging Economies and Islamic Research (JEEIR)
ISSN: 2289-2559
Volume: 7
Number: 3
Page Range: pp. 1-14
Keywords: Sharia compliance, Sharia governance, Financial performance, Islamic banking
Date: September 2019
URI: https://ir.uitm.edu.my/id/eprint/32295
Edit Item
Edit Item

Download

[thumbnail of AJ_INTEN MEUTIA JEEIR B 19.pdf] Text
AJ_INTEN MEUTIA JEEIR B 19.pdf

Download (501kB)

ID Number

32295

Indexing

Statistic

Statistic details