The Influence of Islamic Corporate Governance Towards Financial Performance (Empirical Study on Sharia Commercial Banks in Indonesia Year 2013-2017)

Abstract

This study aims to find empirical evidence of the Islamic corporate governance mechanism influence the institutional ownership, commissioner board proportion, a board of independent commissioners, the sharia supervisory board proportion, and the audit committee on financial performance. The population of this study is Sharia Commercial Bank in Indonesia year 2013-2017. The population is 13 Sharia Commercial Banks. The sampling technique in this study used a purposive sampling technique. This study obtained 9 banks. The data used is secondary data and data analysis methods using multiple regression analysis. The result of this study concludes that the institutional ownership, the size of board commissioners, independent commissioner board, the size of the sharia supervisory board, and the audit committee do not affect financial performance.

The Measurement Of Good Corporate Governance In Islamic Banking And Its Effect On Financial Performance (Empirical Study Of Islamic Commercial Banks In Indonesia)

“…Previous researchers found the Sharia Supervisory Board (SSB) affected financial performance (Aslam & Haron, 2020;Hanifah & Syafruddin, 2020;Hassan et al, 2017;Hisamuddin & Tirta K, 2015). While the other researchers stated, the Sharia Supervisory Board did not affect financial performance (Eksandy, 2018;Muchtar et al, 2020;Nasution & Nasrizal, 2020;Savitri et al, 2020). According to the phenomenon and research gap explained, this research aims to continue the empirical studies.…”

“…Kusuma & Ayumardani, 2016). However, the other studies found there was no significant effect of the Board of Commissioner on the financial performance (M. Kusuma & Rosadi, 2019;Muchtar et al, 2020;Nasution & Nasrizal, 2020;Savitri et al, 2020).…”

“…Kusuma & Rosadi, 2019). Yet, another previous study reported Audit Committee (AC) did not affect financial performance (Eksandy, 2018;Muchtar et al, 2020;Nasution & Nasrizal, 2020;Savitri et al, 2020).…”