Ethical Identity Index and Financial Performance of Islamic Banks in Asia

sumiyati, sumiyati; Vebtasvili, Vebtasvili

doi:10.31332/lifalah.v6i1.2482

Cited by 2 publications

(5 citation statements)

References 11 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The findings of this study are consistent with research that shows that disclosing one's Islamic ethical identity has a considerable impact on financial performance (Marka & Serly, 2020;Rahman et al, 2014;Sumiyati & Vebtasvili, 2021;Zaki et al, 2014), despite the fact that the study (Al-Homaidi et al, 2020b;Alhammadi et al, 2020) found no connection between financial performance and the declaration of Islamic ethical identity. Further, implementing labor standards that are consistent with Islamic ethics will significantly boost the company's growth (Marka & Serly, 2020).…”

Section: Figure 2 Path Analysis Modelsupporting

confidence: 89%

“…Islamic banks' financial performance in Asia, as measured by a scale of ROA and ROE, is impacted by the declaration of Islamic ethical identity (Ariyanto, 2014). Increased investment in Islamic banking will be influenced by the disclosure of a credible Islamic ethical identity and fully disclosed information, which will increase investor satisfaction and encourage continued investment in Islamic banking, which will improve the company's financial performance with an increase in additional capital (Sumiyati & Vebtasvili, 2021). H3a: Islamic corporate governance affects positive financial performance through disclosure of Islamic ethical identity…”

Section: Hypothesesmentioning

confidence: 99%

“…In light of several business issues, including those relating to rivalry, mismatch of products and services, the necessity for technology, and the impact of globalization, Islamic banking necessitates the revelation of Islamic ethical identity (Zaki et al, 2014). The company's provision of thorough, reliable disclosure of yearly reports is one of its strategies for reducing information asymmetry (Sumiyati & Vebtasvili, 2021). H3b: Islamic social responsibility affects positive financial performance through disclosure of Islamic ethical identity…”

Section: Hypothesesmentioning

confidence: 99%

“…Increased investment in Islamic banking tends to be influenced by the disclosure of a credible Islamic ethical identity and fully disclosed information. This increases investor satisfaction and encourages continued investment in Islamic banking, which may improve the company's financial performance with an increase in additional capital (Sumiyati & Vebtasvili, 2021).…”

Section: Figure 2 Path Analysis Modelmentioning

confidence: 99%

See 3 more Smart Citations

The mediating effect of Islamic ethical identity disclosure on financial performance

Mutmainah,

Apriliantika

2023

Asian. J. Islam. Manag.

View full text Add to dashboard Cite

Purpose – The present study examines the impact of Islamic corporate governance and social responsibility on financial performance.Methodology – The study was designed with a quantitative approach. Purposive sampling was used in this study. Data were garnered through panel data from annual reports on Islamic banking in Indonesia and Malaysia from 2018 to 2020. The data were analyzed employing the Path Analysis.Findings – Study findings demonstrate that Islamic social responsibility and corporate governance did not significantly impact financial performance. Additionally, disclosing its Islamic ethical identity, Islamic corporate governance had a substantial impact on financial performance. Islamic social responsibility, however, had no impact on financial performance when Islamic ethical identity was disclosed.Implication – The findings offer empirical insights for managing Islamic commercial banks in Indonesia and Malaysia to elevate the application of Islamic corporate governance and social responsibility. This transparently demonstrates the quality of governance and social responsibility of Islamic banking with the disclosure of Islamic ethical identity following the standards applied by Islamic banking affecting stakeholder satisfaction.Originality – This research contributes significantly to the realm of Islamic banking management. It examines the level of stakeholder satisfaction through the enactment of Islamic corporate governance as a form of supervision of management performance, Islamic social responsibility as a form of corporate concern for the surrounding environment and Islamic ethical identity disclosure to promote the image of Islamic banking.

show abstract

Section: Figure 2 Path Analysis Modelsupporting

confidence: 89%

Section: Hypothesesmentioning

confidence: 99%

Section: Hypothesesmentioning

confidence: 99%

Section: Figure 2 Path Analysis Modelmentioning

confidence: 99%

See 2 more Smart Citations

The mediating effect of Islamic ethical identity disclosure on financial performance

Mutmainah,

Apriliantika

2023

Asian. J. Islam. Manag.

View full text Add to dashboard Cite

show abstract

“…Previous research on the influence of CEI on Islamic banks or companies was conducted by Awwal et al (2023), Sukardi et al (2022), Sumiyati & Vebtasvili (2021), and Mutmainah & Apriliantika (2023). The novelty in this research is the focus on company culture that begins to implement sharia principles, and what distinguishes it from the mentioned study is the utilization of the ownership structure concept as a moderating variable.…”

Section: Introductionmentioning

confidence: 93%

Performance of Indonesia Sharia companies: Does corporate ethical identity matter?

Hartyanti,

Harto,

Wangbenmad

2023

JIAFR

View full text Add to dashboard Cite

Purpose - The development of Islamic finance has made many Indonesia sharia companies register themselves as part of the Indonesia Sharia Stock Index (ISSI). The government always encourages sharia economic growth that upholds ethics. From the Islamic perspective, ethics is the foundation of all aspects of life. This study aims to analyze the performance of Indonesia sharia companies, by linking the importance of Corporate Ethical Identity (CEI) which is implemented in corporate culture.Method - Quantitative research is reviewed through the annual reports of manufacturing companies registered at ISSI for the 2018 and 2019. Linear regression analysis, along with moderated regression analytics, was used to analyze data from 154 manufacturing companies.Result - The results of the study show that CEI has a positive influence on firm performance, and ownership structure as a moderating variable strengthens the influence of CEI on firm performance.Implication - Sharia companies in Indonesia are advised to increase CEI reporting so as to improve financial performance in accordance with sharia principles.Originality - This study represents the inaugural investigation into CEI within Islamic companies operating in Indonesia, with a specific emphasis on corporate culture. The novelty in this research is the focus on company culture, and what distinguishes it from the mentioned study is the utilization of the ownership structure concept as a moderating variable. It also incorporates the utilization of the ownership structure concept as a moderating variable.

show abstract

Ethical Identity Index and Financial Performance of Islamic Banks in Asia

Cited by 2 publications

References 11 publications

The mediating effect of Islamic ethical identity disclosure on financial performance

The mediating effect of Islamic ethical identity disclosure on financial performance

Performance of Indonesia Sharia companies: Does corporate ethical identity matter?

Contact Info

Product

Resources

About