Characteristics of the Sharia Supervisory Board and Its Relevance to Islamic Social Reporting  at Islamic Banks in Indonesia

Meutia, İnten; Aryani, Desi; Widyastuti, Sari Mustika

doi:10.24034/j25485024.y2019.v3.i1.4160

Cited by 12 publications

(28 citation statements)

References 60 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Islamic social reporting (ISR) (Meutia et al, 2019;Nugraheni, 2018); bank efficiency (Saeed and Saeed, 2018); and financial soundness (Khalil and Taktak, 2020).…”

Section: Ijoesmentioning

confidence: 99%

How diverse are Shariah supervisory boards of Islamic banks? A global empirical survey

Kachkar

Yılmaz

2022

IJOES

View full text Add to dashboard Cite

Purpose This study aims to examine diversity in the composition of Shariah supervisory boards (SSBs) of Islamic banks (IBs). It investigates diversity from two perspectives: existing composition of SSBs and the regulatory frameworks and standards of selected Organisation of Islamic Cooperation countries. Diversity characteristics include education, nationality, gender and age. Design/methodology/approach A list of all full-fledged Islamic commercial banks (FFICBs) globally has been carefully prepared and confirmed. Conventional banks with Islamic windows, non-commercial banks, takaful companies and other Islamic financial institutions are excluded. The available profiles of 428 SSB members have been scrutinised and analysed. These board members occupy 522 SSB positions in 238 FFICBs operating in 52 countries around the globe. From the regulatory perspective, 12 national and international Shariah governance frameworks and standards have been examined. Findings Findings of this paper indicate various levels of diversity in SSBs of the reviewed IBs. The level of diversity in educational background and in the nationality of SSBs can be described as generally acceptable. However, a lack of diversity in gender and age among SSB members is evidently observed in IBs. While the lack of age diversity in SSBs may be relatively justified as a common trend in the composition of corporate boards, SSBs of IBs are seriously lagging behind in gender diversity. On the regulatory level, this study concluded that provisions on diversity as a requirement in SSBs are almost non-existent in the existing regulatory frameworks and standards. Research limitations/implications The major limitation of this study is the lack of available information on the SSB members. Practical implications This paper provides insights for IBs and policymakers concerned with the corporate governance of IBs and all Islamic financial institutions. First, it offers an excellent bird’s-eye view of the status of diversity in SSBs of IBs. Second, it motivates policymakers and standard-setting bodies to ensure, through the relevant regulatory frameworks, adequate levels of diversity in the composition of SSBs. Diversity in SSBs of IBs and Islamic financial institutions should be given special emphasis, not only in boards and top management positions but also in the workplace. This is of profound significance to the reputation of Islamic finance industry which has been recently under mounting pressure to translate the rhetoric about the Islamic finance industry being ethical, fair, just, equitable and inclusive into genuine implementations. Originality/value To the best of the authors’ knowledge, this study is the first of its kind to examine the diversity of SSB members from the regulatory as well as from the implementation perspective.

show abstract

“…Islamic social reporting (ISR) (Meutia et al, 2019;Nugraheni, 2018); bank efficiency (Saeed and Saeed, 2018); and financial soundness (Khalil and Taktak, 2020).…”

Section: Ijoesmentioning

confidence: 99%

How diverse are Shariah supervisory boards of Islamic banks? A global empirical survey

Kachkar

Yılmaz

2022

IJOES

View full text Add to dashboard Cite

show abstract

“…Penelitian sebelumnya oleh Baidok & Septiarini (2017) menemukan bahwa frekuensi rapat DPS memiliki dampak dengan arah positif pada pengungkapan ISR. Penelitian oleh Meutia et al (2019) juga memperoleh hasil yang sama. H1 : Frekuensi rapat DPS berdampak positif pada pengungkapan ISR…”

Section: Pengembangan Hipotesis Frekuensi Rapat Dps Dan Pengungkapan Isrunclassified

“…Hipotesis yang dibangun menyatakan bahwa laba yang tinggi akan meningkatkan motivasi manajemen untuk bisa mengungkapkan banyak informasi. Namun, penemuan penelitian ini menolak hipotesis yang ada, sama seperti penelitian terdahulu oleh Susanti & Nurhayati (2018) dan Meutia et al, (2019) yang menemukan bahwa profitabilitas tidak berdampak pada pengungkapan ISR, dengan alasan bahwa melaksanakan serta mengungkapkan ISR secara maksimal merupakan kewajiban setiap perusahaan dan perusahaan juga dituntut untuk sadar akan kepentingan lingkungan dan sosialnya. Setiap perusahaan memiliki tekanan baik segi politik, ekonomi dan sosial dimana mereka wajib untuk mengungkapkan tanggung jawab sosialnya sesuai standar yang ada baik pada saat perusahaan menghasilkan banyak keuntungan maupun sebaliknya.…”

Section: Dampak Profitabilitas Pada Pengungkapan Islamic Social Repor...unclassified

Apakah Frekuensi Rapat DPS, Profitabilitas dan Surat Berharga Syariah Berpengaruh pada Islamic Social Reporting Index?

Marefsi

Kurnia

Pratama

2021

AKTSAR

View full text Add to dashboard Cite

This research aims to identify the factors that impact the Islamic Social Reporting of Sharia Banks in Indonesia. The dependent variable used is Islamic Social Reporting disclosure. At the same time, the independent variables are the meeting frequency of the sharia supervisory board, profitability, and the issuance of shariah securities. The population is all Islamic Banks listed on Financial Services Authority in Indonesia during the period 2014-2020. There are 11 companies selected as samples based on the purposive sampling method. This research uses the panel data regression tested by Eviews 11 software. The result found that the issuance of shariah securities had a positive impact. Although, the meeting frequency of shariah supervisory boards and profitability had no impact on Islamic Social Reporting. These results can be used as a reference for further research on the impact meeting frequency of shariah supervisory board, profitability, and the issuance of shariah securities. In addition, it can also be used as knowledge for companies that the issuance of Islamic securities can be a tool for Islamic banks to disclose Islamic Social Reporting fully. It is hoped that the government will make official standard rules regarding social responsibility reporting for Islamic entities. Keywords: Islamic Social Reporting; meeting frequency of shariah supervisory board; profitability; sharia securities issuance

show abstract

“…The scoring limitation on crossmembership characteristics refers to the Financial Services Authority (2014) that maximum cross-membership of SSB is carried out at four Islamic financial institutions. Research conducted by (Meutia et al, 2019)…”

Section: The Influence Of Concurrent Position Of the Sharia Superviso...mentioning

confidence: 99%

“…The researcher added the variable of the company size and zakah. Studies conducted by Othman (2009) & Meutia et al (2019) find that the company size has a significant effect on ISR disclosure. Meanwhile, the effect of zakah in Arradini's research (2017) shows a significant effect on ISR disclosure.…”

Section: Introductionmentioning

confidence: 99%

Characteristics of the Sharia Supervisory Board, Sharia Company Size, Zakah, and Islamic Social Reporting on Sharia Banks in Indonesia

Arifin¹,

Rosadi²,

Nugroho³

et al. 2021

JES

View full text Add to dashboard Cite

This study aims to determine the effect of the characteristics of the Sharia Supervisory Board as proxied by the size of the sharia supervisory board, concurrent positions of the sharia supervisory board, sharia supervisory board meetings, company size, and Zakah on Islamic Social Reporting. Employing quantitative method, this study used panel data of Islamic commercial banks in Indonesia from 2015 to 2019. The data were analyzed using multiple linear regression by employing EViews 9 softwere. The result found that the variable of the size of the sharia supervisory board, concurrent positions of the sharia supervisory board, and the company size have a significant positive effect on Islamic Social Reporting. Meanwhile, sharia supervisory board meetings and Zakah have no effect on Islamic Social Reporting. The results of this study contribute to enriching the discourse of Islamic social reporting of sharia commercial banks in Indonesia, especially in terms of zakah and sharia supervisory characteristics.

show abstract

Characteristics of the Sharia Supervisory Board and Its Relevance to Islamic Social Reporting at Islamic Banks in Indonesia

Cited by 12 publications

References 60 publications

How diverse are Shariah supervisory boards of Islamic banks? A global empirical survey

How diverse are Shariah supervisory boards of Islamic banks? A global empirical survey

Apakah Frekuensi Rapat DPS, Profitabilitas dan Surat Berharga Syariah Berpengaruh pada Islamic Social Reporting Index?

Characteristics of the Sharia Supervisory Board, Sharia Company Size, Zakah, and Islamic Social Reporting on Sharia Banks in Indonesia

Contact Info

Product

Resources

About