Aims: To empirically evaluate Sharia commercial banks in Indonesia for good corporate governance, capital adequacy, financing risk, profitability, and Islamic Social Reporting (ISR). Study Design: Explanatory research with a quantitative approach and using secondary data. Place and Duration of Study: Sharia commercial banks registered with the Financial Services Authority in the period 2015-2019. Methodology: The sample selection used a purposive sampling technique and resulted in 7 Sharia commercial banks. Data analyzed using path analysis with SmartPLS 3.0. The analysis only uses the inner model evaluation because each variable in this study only uses one proxy or one indicator. Results: Good corporate governance and capital adequacy affects financing risk, good corporate governance, capital adequacy, and financing risk affects profitability, financing risk affects Islamic Social Reporting (ISR), while good corporate governance, capital adequacy, and profitability do not affect Islamic Social Reporting (ISR). Conclusions: Management should be able to create good corporate governance, manage capital adequacy to mitigate financing risk so that it can generate optimal profits for conducting sharia-based social activities and express it using the Islamic Social Reporting (ISR) as business transparency for stakeholders, thus increasing stakeholder confidence in the existence of Islamic commercial banks.
This study aims to analyze, prove and find; (a) the effect of the profit sharing system on the risk of islamic rural banks; (b) the effect of the profit sharing system on efficiency of the islamic rural banks; (c) the effect of efficiency on risk of the islamic rural bank; (d) the effect of the profit sharing system on the profitability of the islamic rural banks; (e) the effect of risk on the profitability of islamic rural bank and (f) the effect of efficiency on the profitability of an islamic rural bank. This research is included in the type of explanatory research . This study uses path analysis with the SPSS program to test, analyze and prove the relationship of the influence of independent variables that affect the profitability of the islamic rural banks. This study found that (a) profit sharing system has no significant effect on the risk of the islamic rural banks; (b) the profit sharing system has a significant effect on the efficiency of the islamic rural banks; (c) efficiency has a significant effect on the risk of islamic rural banks; (d) the profit sharing system has no significant effect on profitability of the islamic rural banks; (e) the risk has a significant effect on the profitability of the islamic rural banks and (f) efficiency has a significant effect on the profitability of an islamic rural bank (IRB);.
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