Islamic Social Reporting (Isr) Analysis  in Indonesia and Malaysia

Nofitasari, Wiwit Ayu; Endraswati, Hikmah

doi:10.15408/aiq.v11i2.10630

Cited by 4 publications

(7 citation statements)

References 7 publications

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“…According to stakeholder theory, the board of commissioners also plays a crucial role in supervising the company's social performance, including the disclosure of corporate social responsibility. This aligns with the findings of Kurniawati and Yaya (2017), Nofitasari and Endraswati (2019), and Sari and Helmayunita (2019). Therefore, the presence of independent commissioners has an influence on the extent of disclosure in corporate social reports, particularly regarding Islamic social responsibility.…”

Section: Hypothesis Developmentsupporting

confidence: 87%

“…Company characteristics such as size, age, profitability, leverage, and the presence of independent commissioners have been identified as determinants of CSR (M. Dewi & Budiasih, 2021;P. A. C. Dewi & Sedana, 2019;Hidayah & Wulandari, 2017;Jannah & Asrori, 2016;Krisna & Suhardianto, 2016;Kurniawati & Yaya, 2017;Nofitasari & Endraswati, 2019;Rahayu & Budi S., 2018;Rizfani & Lubis, 2018;Sari & Helmayunita, 2019;Siregar & Tampubolon, 2019;Umiyati & Baiquni, 2018;Widiyanti & Hasanah, 2018). However, the results of these studies have been inconsistent and sometimes contradict theoretical expectations.…”

Section: Introductionmentioning

confidence: 99%

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Modeling Islamic Social Reporting in the Indonesian Capital Market

Adnan

Fithriady

Marwiyati

et al. 2023

SJEKI

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Islamic Social Reporting (ISR) is an extension of the social reporting concept that examines companies' spiritual and economic roles. However, some Sharia-indexed companies in the Indonesian Capital Market do not fully disclose ISR in their annual reports, despite its importance for Muslim investors. This study analyzes the impact of company size, age, profitability, leverage, and independent commissioners on ISR disclosure using panel data regression analysis. The research employs a quantitative approach, utilizing secondary data from a panel dataset consisting of 10 companies listed on the Jakarta Islamic Index (JII) from 2016 to 2022. To analyze the data, this study utilizes panel data regression analysis, which incorporates three distinct approaches: the standard effect model, fixed effect model, and random effect model. The Chow Test and Hausman Test are then conducted to determine the optimal model for estimating the outcomes. The panel regression results are subsequently estimated utilizing the Random Effect Model approach. The findings indicate that company size, profitability, leverage, and independent commissioners do not affect ISR disclosure. However, company age significantly and positively influences ISR disclosure. These results emphasize the need for mandatory ISR disclosure regulations in the Indonesian Capital Market to enhance transparency and accountability for Muslim investors.======================================================================================================== ABSTRAK – Pemodelan Islamic Social Reporting di Pasar Modal Indonesia. Islamic Social Reporting (ISR) merupakan perluasan dari konsep social reporting yang tidak hanya membahas peran perusahaan dalam perekonomian, tetapi juga perspektif spiritual. Akan tetapi, walaupun ISR merupakan informasi penting bagi investor muslim dalam pengambilan keputusan investasi, beberapa perusahaan dalam indeks syariah belum sepenuhnya mengungkapkan ISR dalam laporan tahunannya. Penelitian ini bertujuan untuk menguji dan menganalisis pengaruh ukuran perusahaan, umur perusahaan, profitabilitas, leverage dan komisaris independen terhadap pengungkapan ISR di Pasar Modal Indonesia. Penelitian ini menggunakan pendekatan kuantitatif dengan menggunakan data sekunder berbentuk data panel dari 10 perusahaan yang listing di Jakarta Islamic Index (JII) dari tahun 2016-2022. Data dianalisis dilakukan dengan regresi data panel yang menggunakan tiga pendekatan: common effect model, fixed effect model dan random effect model. Uji Chow dan Uji Hausman digunakan untuk memilih model terbaik dalam mengestimasi hasil penelitian. Sementara itu, untuk mengestimasi hasil regresi panel digunakan pendekatan Random Effect Model. Hasil penelitian menunjukkan bahwa ukuran perusahaan, profitabilitas, leverage dan komisaris independen tidak berpengaruh terhadap pengungkapan ISR di Pasar Modal Indonesia, sedangkan umur perusahaan berpengaruh positif signifikan terhadap pengungkapan ISR di Pasar Modal Indonesia. Implikasi dari temuan ini menitikberatkan pada pentingnya regulasi tentang kewajiban pengungkapan ISR bagi perusahaan-perusahaan yang listing di JII agar meningkatnya transparansi dan akuntabilitas untuk para investor Muslim.

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Section: Hypothesis Developmentsupporting

confidence: 87%

Section: Introductionmentioning

confidence: 99%

Modeling Islamic Social Reporting in the Indonesian Capital Market

Adnan

Fithriady

Marwiyati

et al. 2023

SJEKI

View full text Add to dashboard Cite

show abstract

“…Legistimasi yang tinggi akan memiliki peluang melakukan pengungkapan ISR lebih luas untuk menggambarkan kinerja perusahan agar dapat diterima masyarakat. Hasil penelitian ini searah dengan penelitian Rosiana, Arifin, and Hamdani (2015); Nofitasari and Endraswati (2019) yang menyatakan bahwa ROA tidak berpengaruh terhadap pengungkapan ISR. Namun hasil penelitian ini bertolak belakang dengan penelitian Taufik, Widianti, and Rafiqoh (2015); Anggraini and Wulan (2015); Hasanah, Widiyanti, and Sudarno (2018); Hussain et al (2020) yang menyatakan bahwa profitabilitas berpengaruh terhadap pengungkapan ISR.…”

Section: Pengaruh Profitabilitas Terhadap Pengungkapan Isrunclassified

Peran Moderasi Ukuran Perusahaan Terhadap Faktor-Faktor Yang Mempengaruhi Islamic Social Reporting

Lestari

Mochlasin

2021

JAS

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Disclosure of Islamic Social Reporting (ISR) has a role in the company, and the broad ISR will lead the company to a positive impact. This study aims to analyze the effect of profitability, leverage, and institutional ownership on Islamic Social Reporting (ISR) disclosure with firm size as a moderating variable in companies listed on the Jakarta Islamic Index (JII) for the 2014-2019 period. Determination of the sample using the purposive sampling method. The data used are 84 company annual reports. The test analysis method uses Moderated Regression Analysis (MRA). The study results partially show that profitability, leverage, and institutional ownership do not affect ISR disclosure. Firm size can moderate the effect of leverage on ISR disclosure. Meanwhile, firm size cannot moderate the effect of profitability and institutional ownership on ISR disclosure. Companies with declining or increasing financial conditions cannot motivate companies to make more comprehensive disclosures. Companies with good intentions, of course, will continue to make broader disclosures in financial conditions up or down.

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“…Obviously, ISR has been extensively studied in Malaysia and Indonesia than the rest of Muslim countries or countries practicing Islamic finance. In some situations, researchers conducted comparative studies on ISR as in the context of Malaysia and Indonesia (Amran et al, 2017;Wardani and Sari, 2018;Nofitasari and Endraswati, 2019;Nugraha et al, 2019). However, most researchers on ISR focus on single country study such as Indonesia (Lestari, 2013;Nugraheni and Wijayanti, 2017;Suwarsi and Azib, 2017;Cahya et al, 2017;Herwanti et al, 2017;Inten and Devi, 2017;Afrizal and Putra, 2018;Hosen et al, 2019;Indayani et al, 2019;Amyulianthy et al, 2020;Yuliana and Sartika, 2020;Khoiriyah, 2020;Khoiriyah and Surakarta, 2020) and ISR studies on Malaysia (Othman et al, 2009;Othman and Thani, 2010;Handayani and Jember, 2017;Mazri et al, 2018).…”

Section: Introductionmentioning

confidence: 99%

“…As being well argued that studies on ISR are many, their findings are conflicting which also signifies inconclusiveness on the ISR findings. Jannah and Asrori (2016) and Nofitasari and Endraswati (2019) reported that there is no formal guided rule for ISR disclosure in Indonesia, therefore ISR remains voluntary in the context of Indonesia. Contrarily, Amyulianthy et al (2020) reveal that ISR has become common practice in Indonesia.…”

Section: Introductionmentioning

confidence: 99%

Does social reporting matter? Empirical evidence

Sarea

Salami

2021

JFRC

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Purpose This paper aims to examine the level of Islamic social reporting (ISR) disclosure of Islamic banking in Gulf Cooperative Council (GCC) countries using a checklist based on Accounting and Auditing Organization for Islamic Financial Institution (AAOIFI) standards. Design/methodology/approach A quantitative method – Tobit Model – is adopted in this study. The unweighted disclosure method used to measure the ISR disclosure checklist consist of 51 items in Islamic banks (IBs) in the GCC countries. The stakeholder theory and legitimacy theory are used to investigate the possible banking performance factors affecting the accounting practices such as ISR disclosure in IBs. Findings The findings show that the ISR disclosure index is linked to the IBs’ performance indicators in GCC countries. The result indicates both Islamic banking profitability and age establish positive and statistically significant relationship with ISR disclosure while leverage establishes significant negative relationship with ISR disclosure. This implies that Islamic banking profitability, leverage, and age are essential bank performance indicators that make ISR disclosure worthy of doing even in the presence of Islamic bank stakeholders in GCC countries. This finding linked compliance with the mandatory disclosure recommendations of AAOIFI Standard No. 7, as well as voluntary disclosure. Research limitations/implications This study used cross sectional data for the year 2019, which is considered more recent despite its being a year data analysis. However, future research should consider mix method as well as more analysis tools provided their number of observations are sufficient enough. Social implications The study identifies the factors that may enhance Islamic financial institutions, including Islamic banking in GCC countries, to comply with ISR disclosure. The application of this study supports Accounting standards setters to consider standards that support ISR disclosure in Islamic banking in different countries. Originality/value To the best of the authors’ knowledge, this study is novel in exploring the level of ISR disclosure in Islamic banking in GCC countries by using a checklist based on AAOIFI standard No. 7 and establishes the relationship between ISR disclosure index and IBs profitability, leverage, as well as age of Islamic banking in operation.

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Islamic Social Reporting (Isr) Analysis in Indonesia and Malaysia

Cited by 4 publications

References 7 publications

Modeling Islamic Social Reporting in the Indonesian Capital Market

Modeling Islamic Social Reporting in the Indonesian Capital Market

Peran Moderasi Ukuran Perusahaan Terhadap Faktor-Faktor Yang Mempengaruhi Islamic Social Reporting

Does social reporting matter? Empirical evidence

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