PurposeThis paper aims to contribute to literature on managing Islamic micro financing by formulating and evaluating the implementation of internal control system for Islamic micro financing. It also aims to investigate the implementation of an internal control system for financing activities practiced by Baitul Maal wat Tamwil (BMT), a special micro finance organization, in Indonesia.Design/methodology/approachFirst, the paper introduces the concept of internal control system. Second, an internal control system for Islamic financing is formulated. Primary data that relate to the implementation of an internal control system for financing activities are obtained through a direct survey using questionnaires. The data are then analyzed using descriptive statistic and qualitative analysis to find the implementations of the internal control system.FindingsBMTs in Indonesia have implemented an internal control system for their financing activities. The rank of the implementation is: information and communication; monitoring; control environment; risk assessment; and control activities. This study also indicates that the implementation of authorization and consultation to the Shariah Supervisory Board was low.Research limitations/implicationsThe respondents of this study are small in number. However, the findings are valid and reliable.Originality/valueTo the author's knowledge, there is a lack of scholars' attention on the implementation of internal control especially for Islamic micro financing. Therefore, this study will provide insight to the literature on how to manage Islamic micro financing efficiently and effectively.

The aim of this study is to investigate the role of Islamic Corporate Social Responsibility in moderating the effect of zakat on Islamic commercial banks’ financial performance. Out of 13 Islamic commercial bank listed by Otoritas Jasa Keuangan from 2012 to 2017, there were only five banks reporting Statement of Zakat Fund Sources and Disbursements. Hence, the final samples of this study consist of 30 observation data. Secondary data collected from 30 annual reports were gathered through documentation. This study utilizes moderated regression analysis to test three research hypotheses. The results shows several findings. Firstly, the amount of corporate zakat being reported in the Statement of Zakat Fund Sources and Disbursements has positive impact on Islamic banks’ financial performance. Secondly, Islamic CSR as measured by Islamic reporting index developed by Belal et al. (2015) has negative impact on Islamic Banks’ financial performance. Thirdly, the role of Islamic CSR in moderating the effect of zakat on financial performance was confirmed.

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As an Islamic system of values, ethics, and principles, shariah has an ultimate objective that is to promote the well-being of mankind in the world and the hereafter. Abu-Zahrah further identified the objective of shariah (maqasid alshariah) into educating people, upholding justice and promoting social welfare. As a group of individuals, Islamic business institutions, including Islamic banks, should be operated in any way that is in line with those objectives. The aim of this study is to investigate the practice of Islamic commercial banks in Indonesia in educating people, upholding justice and promoting social welfare as described by Abu Zahrah in his concept of maqasid ash-shariah. Panel data related to financial ratios based on the operationalization of Abu Zahrah's maqasid ash-shariah concept developed by Mohammed et al. were obtained from the annual reports of 11 Islamic commercial banks in Indonesia. The reports were published in six years' time starting from 2011 to 2016. The data were further calculated to come out with maqasid alshariah index to represent the overall performance of the banks in achieving maqasid al-shariah. To summarize the results, descriptive statistics were finally applied. This study reveals that the thirteen Islamic commercial banks in Indonesia have carried out the necessary activities to achieve the three objectives of shariah. The main focus carried out by the banks is to uphold justice followed by maintaining social welfare. The least priority was given in educating people. During the past seven years, the maqasid al-shariah indexes were fluctuated. The index touched the lowest point in 2014. On average, the maqasid al-shariah index was quite low, opening a room for the banks to improve their activities to be more ethical and social.

Along with the dynamic development of the Islamic capital market, sukuk is rapidly evolving into an Islamic financial instrument in high demand. However, because every investment involves risks, investors must exercise caution when purchasing sukuk. Sukuk rating is one piece of information that investors can use when purchasing sukuk. However, because there are multiple sukuk rating agencies with different rating methods, investors must understand what factors influence sukuk rating. This study aims to investigate the factors influencing the rating of corporate sukuk in Indonesia. It is specifically intended to answer three research questions regarding the influence of 1) financial performance, 2) sukuk maturity, and 3) sukuk structure on sukuk rating. To achieve the goals, 67 sukuk from 14 different nonfinancial sukuk issuers were chosen from 2014 to 2020. Secondary data from PT PEFINDO on profitability, leverage, liquidity, firm size, sukuk maturity, sukuk structure, and sukuk rating were analyzed using ordinal logistic regression to test six research hypotheses. The findings show that firm size and sukuk maturity have a positive impact on corporate sukuk rating in nonfinancial sukuk issuers in Indonesia. The findings lend support to signaling theory and agency theory.========================================================================================================ABSTRAK -  Determinan Apa yang Mempengaruhi Peringkat Sukuk di Indonesia? Seiring dengan dinamisnya perkembangan pasar modal syariah, sukuk berkembang pesat menjadi instrumen keuangan syariah yang semakin diminati oleh masyarakat baik di tingkat nasional maupun internasional. Namun demikian, karena setiap investasi mengandung risiko, investor tetap harus berhati-hati dalam membeli sukuk. Salah satu informasi yang bisa menjadi pertimbangan para investor dalam membeli sukuk adalah peringkat sukuk yang dikeluarkan oleh lembaga pemeringkat sukuk. Namun demikian karena lembaga pemeringkat sukuk yang jumlahnya lebih dari satu menggunakan metode yang berbeda-beda dalam melakukan pemeringkatan, investor perlu memahami faktor apa saja yang menjadi determinan dari peringkat sukuk. Penelitian ini ditujukan untuk menganalisis faktor-faktor yang mempengaruhi peringkat sukuk. Secara lebih khusus, penelitian ini didesain untuk menjawab tiga pertanyaan penelitian tentang apakah: 1) kinerja keuangan; 2) maturitas sukuk; dan 3) struktur sukuk berpengaruh terhadap peringkat sukuk. Untuk menjawab rumusan masalah tersebut, penelitian ini menggunakan data sekunder dari 67 sukuk korporasi yang diterbitkan oleh 14 perusahaan non keuangan dari tahun 2014-2020. Data berkaitan dengan profitabilitas, leverage, likuiditas, ukuran perusahaan, maturitas sukuk, struktur sukuk dan peringkat sukuk yang diterbitkan oleh PT PEFINDO dianalisis dengan menggunakan analisis regresi logistik ordinal untuk menguji enam hipotesis penelitian. Hasil analisis menunjukkan bahwa ukuran perusahaan dan maturitas masing-masing memiliki pengaruh positif terhadap peringkat sukuk. Temuan ini mendukung teori sinyal dan teori agensi.