Evidence of Moderation Maqashid Sharia : Financial Performance, Islamic Social Reporting and The Value of the Company

Abstract

Firm value influences investor perceptions to support the company's sustainability. The studyaimed to analyze the effect of financial performance and islamic social reporting on firm valueand the role of the maqashid sharia index in moderating financial performance and islamicsocial reporting on the company value of Islamic Commercial Banks in Indonesia. Theresearch method used is quantitative. The sampling technique used purposive sampling with asample of 6 Islamic Commercial Banks registered with the Financial Services Authority for2017-2021. The data analysis method used in this study is SEM-PLS with the SmartPLS version4.0.8.7 application. The results showed that the variables of financial performance and islamicsocial reporting had a significant effect on firm value. Then, the maqashid sharia index as amoderator variable cannot moderate the relationship between financial performance andislamic social reporting on firm value. Thus, the Maqashid sharia index is a moderatorpredictor because it can only independently influence the dependent variable.