Determinants of Islamic Social Reporting in Indonesia and Malaysia

Hajawiyah, Ain; Siswantoro, Dodik; Dewi, Miranti Kartika

doi:10.2991/apbec-18.2019.11

Cited by 6 publications

(16 citation statements)

References 19 publications

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“…However, other studies have come out strongly stating that a higher profitability level does not guarantee an increased level of ISR disclosure of Islamic banks (Anggraini & Wulan, 2017). Other studies, such as by Hajawiyah et al (2019), found that an increased level of profitability will often decrease a firm's level of ISR disclosure.…”

Section: Resultsmentioning

confidence: 97%

“…This is done for them to strengthen their position and gain legitimacy among its stakeholders. Most studies in this area show that firm size has a positive influence on the ISR disclosure of a bank (Hajawiyah et al, 2019;Mukhibad, 2018 cited above, several studies fail to show a relationship between firm size and their level of ISR disclosure (Kasih & Rini, 2018;Prasetyoningrum, 2018;Widayuni & Harto, 2014).…”

Section: The Effect Of Firm Size On Isr Disclosurementioning

confidence: 99%

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The effect of profitability, size and Shariah supervisory board of an Indonesian Islamic bank on the Islamic social reporting disclosure

Fachrurrozie

Nurkhin

Wahyudin

et al. 2021

Banks and Bank Systems

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This paper analyzes the effect of profitability and size of Indonesian Islamic banks on the level of Islamic Social Reporting (ISR) disclosure. This study also investigates the role played by the Sharia Supervisory Board (SSB) in the effect of profitability and size of an Islamic bank on ISR disclosure. The presence of SSB is very important in the operations of Islamic banks. SSB should be involved in important company decisions, including the ISR disclosure. The study covers all 14 Indonesian Islamic commercial banks as a population; the analysis will be conducted based on annual reports of the banks’ divisions for the period 2014–2018. A documentation technique was used to collect the data. Moderated Regression Analysis (MRA) was used for data analysis. The results show that the adjusted R-squared coefficient of the equation is 0.341. R-squared contributions of ROA, ROE, size, and SSB are –0.093, 0.010, 0.983, and –0.081. Other results show that profitability (ROA) and size (total assets) significantly affect the level of ISR disclosure among Indonesian Islamic banks. However, the results were indifferent regarding the role of SSB. There is no significant effect of SSB on ISR disclosure. SSB was important for moderating the relationship between profitability (ROA and ROE) and bank size and ISR disclosure level. SSB’s involvement in the decision making of Islamic banks will have a positive effect on the activities of Islamic banks. Islamic banks will tend to have a high level of ISR. Further researchers can develop SSB measurements for more accurate results.

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Section: Resultsmentioning

confidence: 97%

Section: The Effect Of Firm Size On Isr Disclosurementioning

confidence: 99%

The effect of profitability, size and Shariah supervisory board of an Indonesian Islamic bank on the Islamic social reporting disclosure

Fachrurrozie

Nurkhin

Wahyudin

et al. 2021

Banks and Bank Systems

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“…As of January 2012, Malaysian accounting standards were in congruence with the International Financial Reporting Standards (IFRS). In support of this, Hajawiyah et al (2019) also argued that legal has significant implications on the level of ISR disclosure in Malaysia and Indonesia.…”

Section: Jfrc 294mentioning

confidence: 95%

“…Similarly, ST argues that corporation would be willing to disclose more to get public attention because the benefit of the ISR disclosure outweighs the cost. ST further argues that business decision should consider the interest of all concern parties (Hajawiyah et al, 2019). As a result, different studies investigate relationship between ISR and corporate performance while focusing on ST (Oyewumi et al, 2018;Hajawiyah et al, 2019;Indayani et al, 2019;Sofian and Muhamad, 2019).…”

Section: Theoretical Frameworkmentioning

confidence: 99%

“…ST further argues that business decision should consider the interest of all concern parties (Hajawiyah et al, 2019). As a result, different studies investigate relationship between ISR and corporate performance while focusing on ST (Oyewumi et al, 2018;Hajawiyah et al, 2019;Indayani et al, 2019;Sofian and Muhamad, 2019). In addition, ST establishes positive association between ISR and financial performance (Mallin et al, 2014).…”

Section: Theoretical Frameworkmentioning

confidence: 99%

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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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Does sharia governance influence corporate social responsibility disclosure in Indonesia Islamic banks?

Ridwan

Mayapada

2020

Journal of Sustainable Finance & Investment

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Purpose: This study aims to investigate the effect of sharia governance to corporate social responsibility disclosure in Indonesia Islamic banks. Design/methodology/approach: The data in this study are taken from the annual reports of ten Islamic banks in Indonesia in the period 2011-2018. The data analysis method used in this study is multiple linear regression analysis. Findings: This study finds that the effectiveness of the board of directors plays a vital role in enforcing corporate social responsibility disclosure. Whereas, the audit committee and sharia supervisory board are found to have no significant effect on corporate social responsibility disclosure in Islamic banks. Research implications: Results of this study reveal that sharia supervisory board in Indonesia Islamic banks only still focuses on the compliance of Islamic banks with the sharia principles regarding the products and operations. Originality/value: The novelty of this study lies in highlighting the effect of sharia supervisory board as a unique characteristic of sharia governance.

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Determinants of Islamic Social Reporting in Indonesia and Malaysia

Cited by 6 publications

References 19 publications

The effect of profitability, size and Shariah supervisory board of an Indonesian Islamic bank on the Islamic social reporting disclosure

The effect of profitability, size and Shariah supervisory board of an Indonesian Islamic bank on the Islamic social reporting disclosure

Does social reporting matter? Empirical evidence

Does sharia governance influence corporate social responsibility disclosure in Indonesia Islamic banks?

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