Islamic Corporate Governance and Sharia Compliance on Financial Performance Farida
Universitas Muhammadiyah Magelang
Abstract
Article Title : <Islamic Corporate Governance and Sharia Compliance on Financial Performance>
1. Authors
: <Farida>
2. Corresponding Email
: <farida_feb@unimma.ac.id>
3. Affiliation
: <Universitas Muhammadiyah Magelang>
4. Introduction
: < The financial performance of the Sharia industry has increased during unfavorable economic times due to the Covid-19 pandemic. The increase in financial performance, especially in Islamic banking, shows that company management is generally running well, but the high financial performance of Islamic banking does not necessarily meet the level of Sharia compliance. Sharia compliance is the level of compliance with company operations based on Sharia principles.>
5. Purpose
: < This study aims to examine and analyze the influence of Islamic Corporate Governance (ICG) and sharia compliance on financial performance >
6. Method
: < Population in this study is Islamic banking in Indonesia, with the category of Islamic Commercial Banks. The sample criteria are Islamic Commercial Banks that publish annual reports and Good Corporate Governance reports for 5 consecutive years 2015-2019. The analytical method used is multiple regression analysis.>
7. Main Finding
: < The results of the study show that ICG and sharia compliance from the Profit Sharring indicator have a positive effect on financial performance. The results of the study show that sharia compliance with the Islamic Income and Equitable Distribution indicators has no effect on financial performance.>
8. Implication
: < This research has implications for Islamic banking to pay attention to aspects of sharia compliance in achieving company goals, so as to create corporate governance that is in accordance with Sharia principles.>
