Islamic Social Reporting of Islamic Banking in Indonesia

Abstract

The objective of this study was to determine the influence of profitability, liquidity, company size, and leverage on the disclosure of Islamic social reporting (ISR) of Islamic banking in Indonesia. The period of research was 2016-2019 and a quantitative approach was used. The sample included 32 financial reports from 8 Islamic commercial banks in Indonesia registered with the Financial Services Authority for the period 2016-2019, and these were selected by purposive sampling. Data were analyzed through multiple linear regression. The results showed that: (1) profitability and the size of the company did not affect the disclosure of ISR; and (2) liquidity and leverage did affect the disclosure of ISR.
 Keywords: ISR, profitability, liquidity, size, leverage

The Influence of Sharia Financial Performance Towards Islamic Social Reporting with Islamic Corporate Governance as a Moderate Variable

“…Some of the results of these studies were influenced by factors that varied or were inconsistently identified by different researchers. This is supported by the first (Jati et al, 2020), fourth (So et al, 2021), and fifth (Diansari et al, 2022) researchers who obtained different results for the leverage variable, the first researcher found that the results had no effect, while the fourth and fifth researchers found influential results.…”

“…Apart from that, for the profitability variable, differences were found in the results of the sixth researcher (Ben Abdallah & Bahloul, 2022) and other researchers who were used as references in this research, where the researcher (Ben Abdallah & Bahloul, 2022) found that the ratio of profitability, namely ROA, had an effect. negative, while the research results from the first researcher (Jati et al, 2020) and the fifth researcher (Diansari et al, 2022) revealed that ISR disclosure was not affected by ROA as a ratio of profitability. With this research gap, researchers are encouraged to carry out testing again.…”

“…This is because ROA is seen as being able to show the success of a company in creating profits (Jati et al, 2020). It was found from the results of the sixth researcher (Ben Abdallah & Bahloul, 2022) that the ratio of profitability, namely ROA, had a negative effect, while the research results of the first researcher (Jati et al, 2020), and the fifth researcher (Diansari et al, 2022) found that the ratio of profitability namely ROA has no effect on ISR disclosure. In line with the explanation above, the following hypothesis can be put forward:…”

“…Meanwhile, from previous research used as a reference in this research, the results showed that liquidity had an effect on ISR disclosure. This research was conducted by the first researcher (Jati et al, 2020) and the second researcher (Diansari et al, 2022).. From this explanation, the following hypothesis can be put forward:…”

“…Islamic Social Reporting (ISR) disclosure has been the subject of previous research, some of which is cited as a reference in this article. The first research was conducted by (Jati et al, 2020), second, (Mukhibad & Fitri, 2020), third, (Afandy et al, 2021), fourth, (So et al, 2021), fifth, (Diansari et al, 2022), and sixth, (Ben Abdallah & Bahloul, 2022). However, despite the fact that many researchers used the same variables and research periods in previous studies, the findings were inconsistent.…”