Title: An analysis on financial and social performance of Islamic banks in Indonesia

Authors: Hasan Mukhibad; Kiswanto; Prabowo Yudho Jayanto

Addresses: Jurusan Akuntansi, Fakultas Ekonomi, Universitas Negeri Semarang, Gedung C6 Lt. 1 Kampus Sekaran, Gunungpati, Semarang, 50229, Indonesia ' Jurusan Akuntansi, Fakultas Ekonomi, Universitas Negeri Semarang, Kampus Sekaran, Gunungpati, Semarang, 50229, Indonesia ' Jurusan Akuntansi, Fakultas Ekonomi, Universitas Negeri Semarang, Kampus Sekaran, Gunungpati, Semarang, 50229, Indonesia

Abstract: This study is conducted to analyse the implementation of good corporate governance (GCG), company size (Size), and financial deposit ratio (FDR) upon bank's financial and social performance. The social performance is measured using Zakah Performance (ZP) and Qardul hasan Performance (QP) variables. The financial performance is measured using return on assets (ROA) and return on equity (ROE) variable. Samples are Islamic banks in Indonesia determined based on a purposive sampling method. Data are analysed using multiple regression and classical assumption which include multicollinearity test. Results of the study show that the variables of Islamic Corporate Index (IDGI), Size, and FDR have significant impacts on ROA, ZP, and QP. Partially, by 10% significance level, size variable has a significant influence on ROA and ZP while IDGI variable has a significant influence on ZP and QP variable. This research suggests that Islamic banks should improve the implementation of GCG to increase bank social performance.

Keywords: IDGI; Islamic Corporate Index; Zakah performance; Qardul hasan performance.

DOI: 10.1504/IJMEF.2017.087479

International Journal of Monetary Economics and Finance, 2017 Vol.10 No.3/4, pp.295 - 308

Received: 22 Dec 2015
Accepted: 22 Mar 2016
Published online: 16 Oct 2017 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article