• The Journal of Asian Finance, Economics and Business
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• v.7 no.12
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• pp.773-782
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• 2020

The research objectives are to study the implementation of Islamic Corporate Social Responsibility (i-CSR) values in BMT UGT Sidogiri, an Islamic microfinance institution in Indonesia based on Islamic boarding school or pesantren. This research employed a post-positivist paradigm. Data observation was performed by conducting an in-depth interview with several informants. The data analysis utilized an interactive model technique. The research results showed that i-CSR was successfully implemented in the Islamic microfinance institution based on Islamic boarding school due to the mutual passion (convergence) with conventional CSR typologies. The convergence is in two ways, firstly managerial behavior that focuses on protecting company stakeholders, second, creating sustainable corporate values through effective and efficient business activities. The orientation is the creation of a social role based on justice and sustainable development. The convergence is mainly in the dimensions of economic, legal, ethical and philanthropic responsibilities. The Islamic values have enriched the implementation of i-CSR as the form of practicing the teachings of Islam and evidence of human servitude to God so that the behaviors become worthy of worship. The implementation of i-CSR focused on the Islamic teachings. Compliance to Islamic jurisprudence and apply it in business activities became a divergent element of conventional CSR concept.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.12
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• pp.1149-1158
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• 2020

NPF Islamic banking needs to be resolved because it affects banking performance in terms of income and the quality of its productive assets. This study aims to solve problems of non-performing financing and assess and analyze whether the implementation of the Islamic Humanity model can reduce the problem of financing at Bank Syariah Mandiri Indonesia. The study uses qualitative method with Miles and Huberman approach for analizing data through four steps which are; (a) data collection (b) data reduction (c) data display, and (d) conclusion drawing/verification. The results of the study found non performing financing can be reduced with using a new approach namely the Islamic Humanity Approach, which is an interaction between several aspects, namely (a) spiritual aspects, (b) economic aspects, (c) social aspects, and (d) justice aspects. The Islamic humanity model carried out in problem-solving activities at Bank Syariah Mandiri Indonesia includes a friendly approach, communication and deliberation in a family, respect for people, empathy, the concept of justice, and the concept of prayer. Islamic humanity approach shows success in reducing non-performing financing. The research concluded Islamic humanity as a new approach to reduce non-performing financing at Bank Syariah Mandiri Indonesia and it can be implemented to all Islamic banking in Indonesia.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.12
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• pp.1159-1166
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• 2020

The religious organization members have a unique take on the spiritual factors related to their daily life. The present study contributed to the lack of discussion investigating this particular pool of data's financial behavior. This article regressed several predictors of economic behavior, i.e., the locus of control, financial attitude, income, and religiosity, with 460 respondents. The results of the research are as follows: Financial attitude partially influences the financial behavior of Muhammadiyah committee members. Income partially influences the financial behavior of Muhammadiyah committee members. This research indicates that income is one of the factors that plays an essential role in determining the merits of improvement of the financial behavior of Muhammadiyah committee members. The higher the level of income received by Muhammadiyah members, the higher the desire to spend the money. Religiosity partially influences the financial behavior of the religious board of Muhammadiyah members in Indonesia. The higher the religiosity of Muhammadiyah committee members will encourage better financial management. Religiosity indicates how often individuals or Muhammadiyah members practice the religious sharia that they embrace. The findings of this study reveal that locus of control, financial attitude, income, and religiosity are the strong predictors of the board of the religious organization's financial behavior in Indonesia.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.4
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• pp.239-247
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• 2021

Conventional banks are often considered more efficient than Islamic banks because they have been operating for decades, but Islamic banks have shown rapid development recently. Therefore, this study mainly aims to compare the level of efficiency of conventional banks and Islamic banks and which ones have the best level of efficiency. This study employs panel data using Stochastic Frontier Analysis (SFA) as the data analysis technique. The data used is annual data from 13 conventional banks and 13 Islamic banks in Indonesia during the 2014-2019 period. The result shows no significant difference in the efficiency of conventional banks and Islamic banks. This result is presumably influenced by the small size of the bank and the total number of banks used in the study. The data used in the study is limited to the period from 2014 to 2019. The variables utilized are also limited to the availability of financial report data which is publicly published. This study provides additional empirical evidence regarding conventional banks' and Islamic banks' efficiency in Indonesian banking by using the latest data. While theoretically, Islamic banks are expected to be more efficient than conventional banks, this study did not find any strong support for the case in Indonesia during the observation period.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.4
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• pp.151-159
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• 2021

This study aims to compare the level of stability of the Islamic banking system in the ASEAN region, particularly in Indonesia, Malaysia and Brunei Darussalam in the face of macroeconomic turmoil. The data used in this study is secondary data obtained from the official website of the government and banks of each country, with sampling using purposive sampling technique during the period 2013 to 2019. The data analysis method used is panel data using Eviews software. The results showed that the average Z-score value of Islamic banking during the study period in each country was Indonesia (15.61), Malaysia (15.56) and Brunei Darussalam (19.10). The GDP (X1) has a positive effect on the stability of Islamic banking by 54.29%, inflation (X2) has a negative effect of -12.24% on the stability of Islamic banking, and the exchange rate (X3) has a positive effect on the stability of Islamic banking by 42.58%. The findings of this study indicate that the three countries have an average Z-score value that is higher than 2.99, so this shows that Islamic banking in several ASEAN countries is in a stable condition. In addition, a higher GDP and a stronger exchange rate can also encourage a more stable Islamic banking.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.4
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• pp.329-337
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• 2021

This research aims to expose the Islamic perspective on the concept of justice on the Mudarabah contract's profit-sharing ratio. In certain verses in Al-Qur'an, Islamic values in Muamalah, the rules dictated by the Qur'an and its practices, and explanations rendered (more commonly known as Sunnah) by the Prophet Muhammad (pbuh) and Sahabah (the companions of the Prophet Muhammad), and Fiqh Axiom (rules) in Muamalah (Islamic jurisprudence), are used as the instruments of sharia to achieve the study objective. Islamic monetary establishments in Indonesia are still not in full consistency with the Shariah principles, significantly as far as satisfying equity and justice by Islamic banks in mudarabah contract (with clients). The ignominy is the nisbah (ratio) between the capital proprietor and the capital director. There are models or propositions to decide the benefit (profit)-sharing proportion. Nevertheless, none of them explains or specifies the possibility of equity/justice in the profit-sharing ratio. This research utilizes an explorative and subjective methodology that contributes to the philosophical premise of deciding the profit-sharing fairness. The elements of a just ratio for the Mudharabah contract are mutual willingness, the existence of negotiation, and the level of advantages and risks of the labor.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.3
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• pp.1267-1274
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• 2021

This study aims to analyze the effect of corporate communication and service quality on loyalty mediating satisfaction. The population of this study is 384 Islamic bank customers in North Sumatra. This research is quantitative research using the survey method. The number of research samples was 384 customers. Characteristics of this research sample were (1) Savings customers who actively carried out transactions in Islamic banks (2) Savings customers who had used bank services for at least 1 year (3) Savings customers who used services directly and individually. The data analysis technique used in this study was the Partial Least Squares-Structural Equation Model (SEM-PLS) analysis technique, using Warp-PLS 3.0 software. This study investigates the largest Islamic banks in North Sumatra, namely Bank Syariah Mandiri, Bank BNI Syariah, and Bank BRI Syariah. The results show that company communication has a positive and significant effect on satisfaction, service quality has a positive and significant effect on satisfaction, company communication has a positive and significant effect on loyalty, service quality has a positive and significant effect on loyalty, satisfaction has a positive and significant effect on loyalty. There is also a significant effect of satisfaction on the relationship between company communication and loyalty, and the relationship between service quality and loyalty. This study contributes to Islamic banking to increase customer loyalty.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.2
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• pp.143-150
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• 2021

This study investigates and analyzes the difference in Indonesian banks' earnings quality in the pre-audit and post-audit period. This study also investigates the difference in audit quality done by public accounting firms. This study employs time series data taken from the unaudited and audited financial statements of banks listed on the Indonesia Stock Exchange in 2012-2016. Sample selection is made by using a purposive sampling method. The population of this study is 43 banks, and after checking the data for validity and reliability, the final sample size was 26 banks. Audit quality is operationalized with the size of the auditor. Earnings quality is proxied by accruals calculated using the Beaver and Engel (1996) model. The data analysis method used in this study is the paired-sample t-test and chow test. This study shows that there is no difference in earnings quality in the pre-audit and post-audit period. This study also reveals no difference in audit quality between the big four and non-big four auditors. These findings mean that independent auditors do not play a useful role in increasing the reliability of accounting information presented by management to stakeholders. Besides, this study's results do not verify the agency theory regarding auditors' role to minimize opportunistic management behavior in preparing financial statements.

• The Journal of Asian Finance, Economics and Business
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• v.10 no.1
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• pp.145-156
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• 2023

Within the context of publicly traded Sharia-compliant companies in Malaysia, this study investigated the influence that board and company characteristics have on corporate donations. The primary focus of the study was (i) two board characteristics derived from upper echelons theory, namely gender composition and education level, and (ii) four firm variables derived from stakeholder theory, specifically company size, profitability, leverage, and industry category. This study used a total of 402 Shariah-compliant companies that operated in accordance with Shariah law. The information utilized in this study was culled by hand from the annual reports of various companies covering the years 2017 through 2019. According to the findings, the educational level of a company's board of directors has a significant impact on the amount of money donated to charitable organizations by Shariah-compliant companies. The level of expertise possessed by board members can be of assistance to businesses in becoming more aware of the necessity of making contributions or donations. Corporate contribution practices among Shariah-compliant companies in Malaysia were also significantly influenced by the firm's size, profitability, and the industry category in which the business was classified. The findings of the study contribute to a better understanding of the impact that board and company variables have on the activities of corporate donors.