Implementation of Islamic Work Values in Realizing Sharia Good Corporate Governance and Its Implications in Stakeholders Oriented Values (SOV) and Financial Performance of Islamic Banking in Indonesia
Journal Title: Journal of Economics and Business - Year 2019, Vol 2, Issue 2
Abstract
This research examines the effect of Islamic work values on sharia good corporate governance (GCG), and its implications for stakeholders oriented values (SOV) and Islamic banking financial performance in Indonesia. The method of analysis uses Structural Equation Modeling (SEM) with a partial least square (PLS) test. The sample of this study is Islamic banking with an analysis unit of 8 Islamic Commercial Banks in Indonesia. The sampling technique uses a sampling method randomly. The results of the study show that Islamic work values positively influence SOV. Likewise, Islamic work values have a positive effect on sharia GCG. While Islamic work values have no positive effect on sharia GCG and have no implications for SOV. Likewise, Islamic work values do not have a positive effect on financial performance. While Islamic work values have a positive and significant effect on sharia GCG and have implications for financial performance. Islamic work values, combined with sharia GCG, are still oriented to shareholders. For Islamic banking, the GCG model adopted in Indonesia refers to the Continental European model, which is still oriented to shareholders. High moral commitment is needed to implement Islamic work values and Islamic GCG so that it can have implications for the interests of stakeholders. For regulators, GCG reforms need to consider specific business, legal, and social societies so that the objectives of sharia GCG can be achieved optimally.
Authors and Affiliations
Hamdani Hamdani, Yuswar Zainul Basri, Khomsiyah Khomsiyah, Syarif Surbakti
Keywords
Related Articles
- EP ID EP598007
- DOI 10.31014/aior.1992.02.02.97
- Views 92
- Downloads 0
Inter-Sectoral Key Success Factors of Small and Medium Scale Enterprises in Ghana
SMEs are a major source of livelihood for most people in the developing world, but most of them fail within a very short period. Several studies have been conducted on SME success, but the focus is usually on one section...
Importance of Monetary Policy in Côte d’Ivoire’s Economic Growth
Studies analyzing the link between monetary policy and the growth of real production in WAEMU and particularly in Côte d'Ivoire are still very rare. This study analyzes the relationship between monetary policy and econom...
The RAS Method with Random Fixed Points
Today many economists believe that RAS is the initials of economist Richard Stone, who is also the father of the National Financial System (SNA). This idea was introduced to update and reconcile the total supply and tota...
Entrepreneurs Experience and Firm Innovativeness: Multiple Mediation of Attitudinal and Behavioral Competencies
This study was anchored on a postpositivism paradigm and the Theory of perceived attributes and individual innovativeness, regarding the multiple serial mediations of attitudinal and behavioral competencies in the relati...
Vietnam Economic Structure and Greenhouse Gas Emission Based on Input-Output Analysis
Over the years, Vietnam has a relatively high growth rate of gross domestic product (GDP) compared to other countries in the region, an average increase of 6.1% in the period of 2005 - 2016. However, the macro instabilit...