Title: Sharia supervisory board, maqasid syariah, and accounting-based performance: evidence from Indonesia

Authors: Hasan Mukhibad; Doddy Setiawan; Rahmawati; Mahameru Rosy Rochmatullah; Warsina

Addresses: Economics and Business Faculty, Universitas Sebelas Maret, Surakarta, 57126, Indonesia; Economic Faculty, Accounting Department, Universitas Negeri Semarang, Semarang, 50229, Indonesia ' Economics and Business Faculty, Universitas Sebelas Maret, Surakarta, 57126, Indonesia ' Economics and Business Faculty, Universitas Sebelas Maret, Surakarta, 57126, Indonesia ' Economics and Business Faculty, Universitas Sebelas Maret, Surakarta, 57126, Indonesia; Economics and Business Faculty, Accounting Department, Universitas Muhammadiyyah Surakarta, Surakarta, 57162, Indonesia ' Economics and Business Faculty, Universitas Sebelas Maret, Indonesia

Abstract: Maqasid syariah is essential to evaluate the achievement of the Sharia implementation objectives. This research provides evidence of the influence of the maqasid syariah index and Sharia Supervisory Board (SSB) attributes on accounting performance. Data were obtained from the Indonesian Islamic banks and analysed using the panel data regression method. We find that the accounting-based performance was not affected by any of the SSB attributes. Maqasid syariah index was proven to have a positive and significant influence on Accounting-Based Performance. From the three indicators that we used in measuring the maqasid syariah, justice indicators had a significant positive influence on accounting-based performance. These results provided evidence that the high fulfilment of maqasid syariah through fair policies will improve bank accounting-based performance.

Keywords: maqashid shariah index; tenure; meeting frequency; attendance; corporate governance; sharia supervisory board; accounting-based performance.

DOI: 10.1504/IJMEF.2022.126902

International Journal of Monetary Economics and Finance, 2022 Vol.15 No.3, pp.213 - 231

Received: 11 Aug 2020
Accepted: 14 Nov 2020
Published online: 11 Nov 2022 *

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