The influence of islamic social reporting to the return on asset. For most companies and at most times, managers do focus on shareholder value maximization. Populations in this study are all companies that listed in indonesia sharia stock index issi exchange in 20112012. A survey conducted by research international, however, found that while csr practices are commendable, they need to be viewed with caution as these activities are not sufficient in and of themselves social funds, 2000.
This research aimed to examine the indirect effect of islamic corporate governance icg disclosure and intellectual capital ic on islamic social reporting isr disclosure with financial performance as a mediating variable in islamic banking in indonesia. The dependent variable in this study is islamic social reporting. Bassam maali, peter casson and christopher napier introduction. The population of this research is all of islamic bank in indonesia 2014 2016. Pdf islamic social reporting taufik awaludin academia. Islamic social reporting isr is a form of reporting on social activities based on spiritual principles and community expectations holistically related to the role of companies in society and the environment.
In particular, this index is an extension of the social performance reporting standards which include the expectations of. The purpose of this study is to analyze the impact of selected variables such as the size of the bank, bank age, profitability and leverage on the disclosure of islamic social reporting isr in. Social reporting by islamic banks maali 2006 abacus. Overall, the few studies that focused on social reporting by islamic banks, have all focused on the arabian gulf or other muslim countries. Muslim decisionmakers expect corporations to include additional information in their reports to enable them to exercise prudence, both from economics and islamic jurisprudence point of views. Disclosure of islamic social reporting in sharia banks. Profitability has no positive effect on islamic social. Islamic social reporting isr islamic social reporting isr is a performance reporting standard for shariabased companies. Maali, bassam mohammed and casson, peter and napier, christopher, social reporting by islamic banks.
Islamic social reporting disclosure and firm value. This study examines reporting by ten islamic banks regarding their social justice role in societies they operate in. Penelitian ini bertujuan untuk menguji pengaruh islamic social reporting index isr index terhadap kinerja keuangan yang diproksikan dengan profit sharing ratio pada perbankan syariah di indonesia. The exploration of the social role of islamic banks could also include the extent that islamic banks attempt to extend their microfinance services or venture capital mudarabah products to small enterprises, small entrepreneurs and women. The islamic reporting initiative iri is part of a growing international alliance of thought leaders who believe that the interconnectedness of global business provides a real opportunity to address social and environmental challenges by focusing on shared values. Islamic social reporting disclosure, company value. Annual international conference on islamic studies 14 th aicis, stain samarinda, balikpapan. Measurement of islamic social reporting is based on islamic social reporting categories that used to calculate the islamic social reporting index as seen from the companys annual report. By using critical theory and immanent critique, the study attempts to explain and delineate reasons for disclosures and silences in islamic banks annual reports and web sites visavis social justice. Islamic principles and the notion of accounting for the environment, accounting forum, 30 3, september, 24565 385 18. Dengan menggunakan sampel tujuh bank diperoleh 42 data observasi selama tahun 20102016.
In particular, this index is an extension of the social performance reporting standards which include the expectations of the community. There are e l e v e n b a n k s and obtained 44 observations. Todays business environment is more complicated than ever. An empirical examination into the social reporting. Our analysis suggests that social reporting by islamic banks falls significantly short of our expectations. Determinants of islamic social reporting among top shariah. The purpose of this research is to examine the difference of islamic social reporting isr disclosure level of islamic banking in indonesia and malaysia based on isr index. Islamic social reporting isr merupakan variabel dependen yang diukur dengan indeks isr dari masingmasing perusahaan setiap tahun. The resurgence of islam to a loftier pedestal as a way of life opened up an additional dimension to financial reporting to stakeholders.
Difference analysis of social performance with the islamic. The research is research explanatory which used secondary data listed companies at jakarta islamic index jii by 20 2017. In addition, with exception of the model of social reporting developed by haniffa 2001, all the prior research has been concerned with over. Islamic social reporting, equity, profitability, corporate governance. Islamic social reporting isr, profitability, zakat, roa, roe, islamic banks. A new integrated waqf reporting system iwrs is proposed based on islamic reporting, accountability and social responsibility. Berikut ini adalah jurnal internasional ekonomi islam pdf yang merupakan kumpulan file dari berbagi sumber jurnal, tentang islamic social reporting yang bisa bapakibu gunakan dan diunduh secara gratis dengan menekan tombol download biru dibawah ini. This study replicated the haniffa and hudaib study by examining the social reporting practices of islamic banks in saudi arabia.
The samples were selected by purposive sampling method. Islamic bank has an economy function as well as a social function. Pengaruh pengungkapan islamic social reporting isr terhadap. Applying these principles, we develop a benchmark set of social disclosures appropriate to islamic banks. Islamic finance islamic rural banks islamic work ethics, employee satisfaction, affective commitment nonperforming asset nonhalal income, islamic bank, islamic principle, economic activities. Islamic social reporting disclosure and determinant. Novelty islamic social reporting is the answer and solution to the needs of the interested parties concerned with the companys financial statements. This study aims to analyze the effect of profitability, leverage, the board of commissioners and the number of sharia supervisory board of the islamic social reporting isr islamic banks in indonesia and malaysia during the period 20142016. Implementing islamic corporate governance icg and islamic. Nilai indeks isr diperoleh dengan metode analisi isi content analysis pada laporan tahunan, laporan keberlanjutan, danatau laporan pkbl perusahaan. In isr, the concern is not just on social justice but goes beyond reporting on the.
Teori legitimasi dijadikan dasar untuk menjawab hipotesis. Pengaruh islamic social reporting terhadap profitabilitas return on asset dan return on equity pada bank umum syariah di indonesia the act of accuracy and prudence is very important in the company because is the factor that determines the sustainability of companies such as banking. The ethnography, which is rich and authoritative, highlights the distinctiveness of the malaysian case and it is sure to influence future scholars in the field for many. In addition, the banks tend to disclose only those items that help to construct a positive image, such as matters relating to charity and zakah an islamic. Standar setting for the financial reporting of religious business organisations. Social reporting by islamic banks shahid beheshti university. By viewing it through the lenses of the legitimacy and stakeholder perspective, the study explores the commitment of islamic banks towards wider stakeholders in 7 dimensions shariah social internal social externalenvironmentalshariah governancegovernanceethics and 20 themes. Based on the above description, regarding the influence of islamic social revealed the reporting on return on asset, it could be the formulation of problem as follows. Islamic banking has functions that are not merely oriented towards gaining profit but also related to social roles in society. The level of disclosure of social responsibility reporting in islamic perspective, using isr index explains that islamic banks having.
Islamic social finance report 2014 islamic microfinance. Apr 29, 2008 islamic banks provide financial products that do not violate sharia, the islamic law of human conduct. Sections three and four detail the importance of social justice in the. Islamic social reporting 21 stated that isr is a social reporting that involves not only a holistic expectation of the society regarding the role of companies in the community but also on spiritual perspective 16. Bassam maali, peter casson and christopher napier 2006, social reporting by islamic banks, abacus. The need of islamic corporate social reporting framework. It explores if certain themes related to social justice are present or absent from their annual reports and websites.
Within this dimension, islamic social reporting isr plays an important role particularly to the muslim decisionmakers. Pdf determinants of islamic social reporting among top sharia. Department of entrepreneurship and business technology, school of entrepreneurship and management technology federal university of technology, pmb65 minna, niger state nigeria. However, the development of isr is currently not growing rapidly in indonesia because there are no regulations that regulate sharia social responsibility reporting standards. The influence of islamic social reporting to the return on. This study was to determine the effect of disclosure of islamic social reporting to the return on assets in islamic banks in indonesia by using descriptive and. For the control variables, company size has an effect on islamic social reporting but leverage has no effect on islamic social reporting. Department of accounting international islamic university malaysia. Islamic societies have become affected, and in some cases dominated, by western cultural values. Islamic social reporting isr pertama kali digagas oleh ross haniffa pada tahun 2002 dalam tulisannya yang berjudul social reporting disclosure. A journal of accounting, finance and business studies, 42 2, june, 26689 406 19. Resarch journal of international studies, 112, 420. Sukuk issuance has no e ect because the ownership structure of companies in.
So that these functions describe corporate social responsibility. Determinan pengungkapan islamic social reporting pada bank. The determinants of islamic social reporting disclosure in indonesia. Pdf social reporting by islamic banks in malaysia wan. By viewing it through the lenses of the legitimacy and stakeholder perspective, the study explores the commitment of islamic banks towards wider stakeholders in 7 dimensions shariahsocial internalsocial externalenvironmentalshariah governancegovernanceethics and 20 themes. The last thirty years have witnessed the appearance and rapid expansion of islamic banking both inside and outside the islamic world. The islamic principles upon which the banks claim to operate give an important role to social issues. Pengaruh pengungkapan islamic social reporting isr. The results of the analysis suggest that social reporting by islamic banks falls significantly short of our expectations for entities whose operations are based on islamic principles. Pdf islamic social reporting of listed companies in malaysia. Determinants of islamic social reporting top shariah approved companies in bursa malaysia. Analysis result prove that financial performance affects on islamic social reporting while islamic corporate governance cannot moderate the relationship between financial performance and islamic social reporting. Social reporting practices of islamic banks in saudi arabia umaru mustapha zubairu olalekan busra sakariyau chetubo kuta dauda.
The actual social disclosures contained in the annual reports of twentynine islamic banks located in sixteen countries was content analysis to measure the volume of social disclosures. The research results show that the size has positive effects not significant toward islamic social reporting isr disclosure. Purposethis study examines the social disclosure by islamic banks in malaysia and bahrain. Berikut ini adalah download jurnal gratis yang merupakan kumpulan file dari berbagi sumber tentang jurnal islamic social reporting yang bisa bapakibu gunakan dan diunduh secara gratis dengan menekan tombol download biru dibawah ini.
Financial performance mediation in the influence of islamic. Over the last 25 years the need for accounting practices in an islamic perspective has risen, this is because western financial and social reporting frameworks may not be suitable for islamic enterprises as it goes against sharia law islamic law therefore islamic banks have emerged. Request pdf social reporting by islamic bank the last thirty years have witnessed the appearance and rapid expansion of islamic banking both inside and outside the islamic world. The research results indicate that 1 there are differences in the disclosure of islamic social reporting between indonesia and malaysia. The results of the research on the social role of islamic banks show inconsistency both domestically and abroad. This article analyzes the evolution and implementation of islamic social reporting. The analysis results show that the awareness of islamic banks to report their social responsibility is still low. Islamic corporate governance dalam memoderasi hubungan antara. Investors are forcing managers to focus on value maximization.
Muhammad 2010 explain that financial report makers as part of companies tend to minimize reporting costs to ensure cost efficiency because their main goal is economic performance. Social reporting by islamic banks by bassam maali, peter. The dependent variable used in this research is financial performance measured by return on asset roa and return on equity roe. In addition, with exception of the model of social reporting developed by haniffa 2001, all the prior research has been concerned with overall reporting of islamic businesses, and not speci. The report is the first of its kind study covering islamic social finance across countries in south and southeast asia with sizeable muslim populations including indonesia, india, pakistan, bangladesh, malaysia, singapore and brunei darussalam.
In isr, the concern is not just on social justice but goes beyond reporting on the environment, minority interests and. The samples that is used in this research is five islamic banks in indonesia and five islamic banks in malaysia. Islamic social reporting isr is a benchmark for reporting islamicbased social performance to companies. The findings suggests that social reporting by islamic banks falls. Islamic banks provide financial products that do not violate sharia, the islamic law of human conduct. An islamic perspective 3 environment friendly purchase and supply policies.
However, two prominent studies of the social reporting practices of islamic banks have shown otherwise maali et. The effect of intellectual capital and islamic corporate. Isr lebih lanjut dikembangkan secara lebih ekstensif oleh rohana othman, azlan md thani, dan erlane k ghani pada tahun 2009 di malaysia dan saat ini isr masih terus. This study examines social reporting by islamic banks with special emphasis on themes related to social justice. The past 15 ye ars of islamic social and environmental reporting literature and to offer a detailed bibliography as a starting point for those in terested in this area. Iosr journal of humanities and social science iosrjhss volume 22, issue 5, ver. Pdf islamic social reporting in shariah banks in indonesia. Corporate islam is a muchneeded text on the contemporary engagement of economy with sharia and its demands and outcomes for both producers and consumers in the economy. Financial performance mediation in the influence of islamic corporate governance disclosure on the islamic social reporting the results of the research on the social role of islamic banks show inconsistency both domestically and abroad. This study aims to examine the influence of islamic social reporting isr disclosure on financial performance. The results of the analysis also suggest that banks required to pay the islamic religious tax zakah provide more social disclosures than banks not subject to zakah. The aim of this study is to obtain empirical evidence about factors that affect islamic social reporting isr in the sharia compliant companies in indonesia. Pengungkapan islamic social reporting pada perusahaan di.
Increased disclosure of islamic social performance is expected to influence the decisions of muslim investors in. Faktorfaktor yang mempengaruhi islamic social reporting. Disclosure levels effect of islamic social reporting on companys. Analisis isi adalah suatu metode analisa data melalui teknik. The effect of corporate governance, leverage, and liquidity. The sample of this research is islamic bank in indonesia by using purposive sampling method. Implementing islamic corporate governance icg and islamic social reporting isr in islamic financial institution ifi. Analysis of factors affecting the disclosure of islamic. For the past of 25 years, studies of islamic accounting and accountabil ity have been emerging tremendously.
Financial performance mediation in the influence of. An empirical examination into the social reporting practices. The independent variable in this research is the islamic social reporting isr. The study contributes to the development of waqf reporting. Islamic corporate governance dalam memoderasi hubungan. Islamic social reporting isr on firm value on islamic banking in indonesia. Islamic reporting initiative sustainability reporting standard. Both of these functions is the ethical identity that islamic banks are also participating in community improvement. Pdf determinants of the islamic social reporting disclosure. This index refers to the aaoifibased reporting standards.
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