An analysis on financial and social performance of Islamic banks in Indonesia
by Hasan Mukhibad; Kiswanto; Prabowo Yudho Jayanto
International Journal of Monetary Economics and Finance (IJMEF), Vol. 10, No. 3/4, 2017

Abstract: This study is conducted to analyse the implementation of good corporate governance (GCG), company size (Size), and financial deposit ratio (FDR) upon bank's financial and social performance. The social performance is measured using Zakah Performance (ZP) and Qardul hasan Performance (QP) variables. The financial performance is measured using return on assets (ROA) and return on equity (ROE) variable. Samples are Islamic banks in Indonesia determined based on a purposive sampling method. Data are analysed using multiple regression and classical assumption which include multicollinearity test. Results of the study show that the variables of Islamic Corporate Index (IDGI), Size, and FDR have significant impacts on ROA, ZP, and QP. Partially, by 10% significance level, size variable has a significant influence on ROA and ZP while IDGI variable has a significant influence on ZP and QP variable. This research suggests that Islamic banks should improve the implementation of GCG to increase bank social performance.

Online publication date: Mon, 16-Oct-2017

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