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http://dx.doi.org/10.13106/jafeb.2021.vol8.no6.0983

The Role of Corporate Social Responsibility and Sharia Compliance on Islamic Banks Performance in Indonesia and Malaysia  

SISWANTI, Indra (Management Department, Faculty of Economics, Universitas Mercu Buana)
SHARIF, Sabri Mohammad (Business Department, Faculty of Business and Accounting, Lincoln University College)
INDRAJAYA, Sonny (Management Department, Faculty of Economics, Universitas Mercu Buana)
Publication Information
The Journal of Asian Finance, Economics and Business / v.8, no.6, 2021 , pp. 983-992 More about this Journal
Abstract
This study aims to analyze the role of corporate social responsibility (CSR) as the moderation effect of sharia compliance on Islamic banks performance in Indonesia and Malaysia. The population in this study consists of 14 Islamic banks in Indonesia, and 17 local Islamic banks in Malaysia. The sample used in this study are the big five Islamic banks in Indonesia and Malaysia during the period from 2015 to 2019. This research used panel data regression with Eviews 10 software. From results of the Chow test, the model selected is fixed-effects, and from the Hausman test, the model selected is fixed-effects as well. The findings show the same results for both Islamic banks in Indonesia and Malaysia; the profit-sharing ratio has a significant effect on the financial performance of Islamic banks in Indonesia. Islamic income ratio has a significant effect on the financial performance of Islamic banks. Corporate social responsibility has a moderating effect of profitsharing ratio on the financial performance of Islamic banks. And corporate social responsibility has a moderating effect of Islamic income ratio on the financial performance of Islamic banks. Corporate social responsibility can strengthen the effect of sharia compliance on the financial performance of Islamic banks in Indonesia and Malaysia.
Keywords
Profit-Sharing Ratio; Islamic Income Ratio; Financial Performance; Corporate Social Responsibility;
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