The Effect of Corporate Governance On Financial Performance With CSR as A Moderating Variable

Authors

  • Musdalifa Musdalifa Universitas Jambi
  • Afrizal Afrizal Universitas Jambi
  • Wirmie Eka Putra Universitas Jambi
  • Riko Wijaya Universitas Jambi

DOI:

https://doi.org/10.54099/ijebm.v3i2.1152

Abstract

This study aims to provide new evidence on the comparison of the implementation of Corporate governance on the financial performance of Indonesian and Malaysian Islamic banking from 2016 to 2020. The authors uses multiple regression analysis with samples of Indonesian and Malaysian Islamic banks from 2016 to 2020. The data used are obtained from the financial statements of Indonesian and Malaysian Islamic banks from 2016 to 2020. Financial performance is measured by profitability ratios using return on assets (ROA). CSR from the test results were not able to moderate the financial performance of Indonesian and Malaysian Islamic companies from 2016 to 2020. This study is a comparative study of the effect of the implementation of Corporate governance on the financial performance of Islamic banking companies in Indonesia and Malaysia with CSR as the moderating variable.

References

Abdullah, M. A. (2011). Corporate Governance Perbankan Syariah di Indonesia. Ar Ruzz Media Grup.

Abdullah, W. A. W., Percy, M., & Stewart, J. (2015). Determinants of voluntary corporate governance disclosure: Evidence from Islamic banks in the Southeast Asian and the Gulf Cooperation Council regions. Journal of Contemporary Accounting and Economics, 11(3), 262–279. https://doi.org/10.1016/j.jcae.2015.10.001

Afrifa, G. A., & Tauringana, V. (2015). Corporate governance and performance of UK listed small and medium enterprises. Corporate Governance (Bingley), 15(5), 719–733. https://doi.org/10.1108/CG-03-2015-0029

Ahmed, K. S. B. H. M. A. F. (2013). An evaluation of corporate governance practices of Islamic banks versus Islamic bank windows of conventional banks A case of Pakistan. https://doi.org/10.1108/01409171311315003

Ajili, H., & Bouri, A. (2018). Corporate governance quality of Islamic banks: measurement and effect on financial performance. International Journal of Islamic and Middle Eastern Finance and Management, 11(3), 470–487. https://doi.org/10.1108/IMEFM-05-2017-0131

Al Farooque, O., Buachoom, W., & Sun, L. (2020). Board, audit committee, ownership and financial performance – emerging trends from Thailand. Pacific Accounting Review, 32(1), 54–81. https://doi.org/10.1108/PAR-10-2018-0079

Alabdullah. (2018). The relationship between ownership structure and firm financial performance: Evidence from Jordan".

Alam Choudhury, M., & Nurul Alam, M. (2013). Corporate governance in Islamic perspective. International Journal of Islamic and Middle Eastern Finance and Management, 6(3), 180–199. https://doi.org/10.1108/IMEFM-10-2012-0101

Alam, K., & Miah, M. S. (2019). The in fl uences of board of directors and management in Shariah governance guidelines of the Islamic banks in Bangladesh. https://doi.org/10.1108/JIABR-08-2019-0155

Alnasser, S. A. S., & Muhammed, J. (2012). Introduction to corporate governance from Islamic perspective. Humanomics, 28(3), 220–231. https://doi.org/10.1108/08288661211258110

Ammann, M., Oesch, D., & Schmid, M. M. (2011). Corporate governance and firm value: International evidence. Journal of Empirical Finance, 18(1), 36–55. https://doi.org/10.1016/j.jempfin.2010.10.003

Aras. (2010). Managing corporate performance Investigating the relationship between corporate social responsibility and financial performance in emerging markets. Emerald. https://doi.org/http://dx.doi.org/10.1108/17410401011023573

Baydoun, N., Maguire, W., Ryan, N., & Willett, R. (2012). Corporate governance in five Arabian Gulf countries. Managerial Auditing Journal, 28(1), 7–22. https://doi.org/10.1108/02686901311282470

Ben Zeineb, G., & Mensi, S. (2018). Corporate governance, risk and efficiency: evidence from GCC Islamic banks. Managerial Finance, 44(5), 551–569. https://doi.org/10.1108/MF-05-2017-0186

Bhatt, P. R., & Bhatt, R. R. (2017). Corporate governance and firm performance in Malaysia. Corporate Governance (Bingley), 17(5), 896–912. https://doi.org/10.1108/CG-03-2016-0054

Budiarti, E., & Chorry Sulistyowati. (2014). Struktur kepemilikan dan struktur dewan perusahaan. 3, 161–177.

Chemala, M. Y. R. (2019). Determinan, Analisis Bank, Profitabilitas Di, Syariah. 3(1), 101–114.

Chen, Y., Eshleman, J. D., & Soileau, J. S. (2017). Business Strategy and Auditor Reporting. Emerald, 36(2), 63–86. https://doi.org/10.2308/ajpt-51574

Darko, J., Aribi, Z. A., & Uzonwanne, G. C. (2016). Corporate governance: the impact of director and board structure, ownership structure and corporate control on the performance of listed companies on the Ghana stock exchange. Corporate Governance (Bingley), 16(2), 259–277. https://doi.org/10.1108/CG-11-2014-0133

Darmadi, S. (2013). Corporate governance disclosure in the annual report: An exploratory study on Indonesian Islamic banks. Humanomics, 29(1), 4–23. https://doi.org/10.1108/08288661311299295

Elamer, A. A., Ntim, C. G., & Abdou, H. A. (2019). Jo na l P. Global Finance Journal, 100488. https://doi.org/10.1016/j.gfj.2019.100488

Fahmi, I. (2011). Analisis Kinerja Keuangan (1st ed.). CV. ALFABETA.

FAUZI, H. (2015). Corporate ownership and company performance : a study of Malaysian listed companies. https://doi.org/10.1108/SRJ-05-2014-0064

Downloads

Published

2024-11-30

How to Cite

Musdalifa, M., Afrizal, A., Putra , W. E. ., & Wijaya, R. . (2024). The Effect of Corporate Governance On Financial Performance With CSR as A Moderating Variable. International Journal of Entrepreneurship and Business  Management, 3(2), 91–104. https://doi.org/10.54099/ijebm.v3i2.1152

Issue

Section

Articles