The Mediation of Islamic Social Reporting to Influence the Islamic Corporate Governance on Firm Value (Study on Islamic Banking in Southeast Asia 2012-2016)
This study investigates Islamic social reporting as an intervening variable between Islamic corporate governance to firm value. The method used purposive sampling with the samples of 11 sharia banks listed on Bursa Malaysia and Indonesia in 2012-2016. The analysis used path analysis with warp partial least square to examine the mediation effect of Islamic social reporting. Indicators for measuring Islamic corporate governance used accountability, transparency, responsibility, and fairness. Indicators measured firm value using price to book value ratio and price to earnings ratio. Indicators for measuring Islamic social reporting used investment and finance, products and services, labor, community, environment, and corporate governance. The results described Islamic corporate governance had a significant positive effect on firm value. Islamic corporate governance showed a significant positive impact on Islamic social reporting. Islamic social reporting had a significant negative effect on firm value, so it is concluded that Islamic social reporting is unable to mediate between the influence of Islamic corporate governance on firm value. This confirms that sharia banking with good Islamic corporate governance would improve Islamic social reporting and firm value, while Islamic social reporting runs well could not respond to investors as information needed in decision making to increase firm value.
Firm Value; Islamic Corporate Governance; Islamic Social Reporting
- Belkaoui, Ahmed. (1984). Socio Economic Accounting (SEA). Second. California: Harcourt Brace Jovanovich Publishing Co.
- Cahya, Bayu T., Nuruddin, Amiur and Ikhsan, Arfan. (2017). Islamic Social Reporting: from the Perspectives of Corporate Governance Strength, Media Exposure and the Characteristics of Sharia Based Companies in Indonesia and Its Impact On Firm Value. IOSR Journal of Humanities and Social Science 22(5): 71–78.
- Forum for Corporate Governance in Indonesia (FCGI). (2018). Good Corporate Governance. FCGI: 1. Retrived from http://www.fcgi.or.id.
- Ghozali, Imam, and Chariri, Anis. (2007). Teori Akuntansi. Semarang: Universitas Diponegoro.
- Ghozali, Imam, and Latan. (2017). Partial Least Squares. Konsep, Metode dan Aplikasi Menggunakan Program Warppls 5.0. Semarang: Badan Penerbit Universita Diponegoro.
- Haniffa, R.M. (2002). Social Reporting Disclosure An Islamic Perspective. Indonesian Management & Accounting Research 1(2): 128–46.
- Khasanah, Dahliatul, Isti and Sucipto, Agus. (2020). Pengaruh Corporate Social Responbility (CSR) dan Good Corporate Governance (GCG) terhadap Nilai Perusahaan dengan Profitabilitas Sebagai Variabel Intervening. AKUNTABEL: Jurnal Akuntansi dan Keuangan 17(1): 14–28.
- Larbsh, Mansor M. 2015. Islamic Perspective of Corporate Governance. University Bulletin 1(17): 135–52.
- Maali, B., Casson, Peter and Napier, Christopher. (2006). Social Reporting by Islamic Banks ReadCube Articles. Abacus 42(2): 266–89.
- Malik, Saif. 2012. Relationship between Corporate Governance Score and Stock Prices: Evidence from KSE- 30 Index Companies. International Journal of Business and Social Science (Vol. 3 No. 4 [Special Issue-February 2012]): 239–49.
- Mutaqin, Zainul and Tandika, Didik. (2018). Pengaruh Corporate Governance terhadap Islamic Social Reporting serta Berdampak pada Nilai Perusahaan (Studi Kasus pada Perusahaan-Perusahaan yang Terdaftar di Jakarta Islamic Index Periode 2014-2017 ). Prosiding Manajemen UNISBA 4(2).
- Othman, Rohana and Md Thani, Azlan. (2010). Four Important Tests where Ranges for Normal Vary. International Business & Economics Research Journal (IBER) 9(4): 135–44.
- Rama, Ali. (2015). Analisis Deskriptif Perkembangan Perbankan Syariah di Asia Tenggara (2004-2016). The Journal of Tauhidinomics 1(2): 105–23.
- Ratri, Rahma Frida, and Dewi, Murdiyati. (2017). The Effect of Financial Performance and Environmental Performance on Firm Value with Islamic Social Reporting (ISR) Disclosure as Intervening Variable in Companies Listed at Jakarta Islamic Index (JII). SHS Web of Conferences 34: 12003.
- Sembiring, Eddy Rismanda. (2019). Pengaruh Kinerja Keuangan, Political Visibility dan Ketergantungan pada Hutang terhadap Pengungkapan Tanggung Jawab Sosial Perusahaan. E-JRA Vol. 08 No. 07 Agustus 2019 Fakultas Ekonomi dan Bisnis Universitas Islam Malang 08(10): 116–30.
- Utami, Reistiawati, and Yusniar, Wulansari M.. (2020). Pengungkapan Islamic Corporate Social Responsibility (ICSR) dan Good Corporate Governance (GCG) terhadap Nilai Perusahaan dengan Kinerja Keuangan sebagai Variabel Intervening). EL MUHASABA: Jurnal Akuntansi (e-Journal) 11(2): 162–76.
- Wolk, Harry I, and Tearney, Michael G. (2001). Accounting Theory: A Conceptual and Institutional Approach Ed.5. ed. 5. Australia: South Western College Publishing.
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.