Accountability And Transparency Of Sharia Micro Financial Institutions On Customer Trust With Financial Performance As An Intervening Variable

Abstract

Purpose-This study aims to determine the effect of accountability and transparency of Islamic microfinance institutions on customer trust, with financial performance as an intervening variable in Islamic microfinance institutions, one of the significant microfinance in Indonesia. Methodology This research is a research gap, which tests the hypothesis (hypothesis testing) type causal. The aim is to determine the causal relationship between the independent variable and the dependent variable. The research location used in this study is the Central Java Sharia BTM (Islamic microfinance institution) in Indonesia, which has 36 members. The results of the test indicate that accountability partially influences performance significantly and is positive, while transparency did not significantly affect. Tested together shows the performance variables are influenced by accountability and transparency. While equation 2 contains four hypotheses. It can be concluded that the accountability and performance variables have an insignificant influence on people's trust, but the performance of ROA and BOPO has a significant effect on trust. When you look at the value of the test together, it can be concluded that accountability, transparency, and performance do not affect people's trust. Limitations of the Research-This research is only conducted in a small number of Islamic microfinance institutions in Indonesia. It is exclusively owned by Muhammadiyah NGOs with locations only in Central Java, so research needs to be done in different places. A separate study needs to be done between accountability and transparency on the dependent variable of public trust. Research needs to be done using non-financial performance. The scientific contribution of this research was conducted to connect several research variables from other separate studies and where the research was carried out in Indonesia, especially related to Islamic microfinance institutions.