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 71
- Downloads 0
Factors Influencing the Behavior Intention of E-Banking Transactions through Mobile Phones in China
With the growth of using e-banking transactions through mobile phones in China, it brings along with the convenience of people's lives as it enables people to have access to banking services anywhere and at any time as w...
The Art of Crafting Actionable National Innovation Policy: The Case of Sri Lanka
Innovation or S&T policy has become one of the crucial policy domains in almost all the countries during the last three decades. The association between the level of innovation and the socio-economic development of a cou...
Analyzing the Impact of Climatic and Economic Variables on Tourism Demand Fluctuation in Japan
The aim of this study is to analyze the influence of climatic and economic variables on seasonal tourism demand variations in Japan’s major western areas. Seasonal tourism fluctuations can present a serious problem, sinc...
The Influence of Penalties, the Trust on Authorities, and the Tax Audit Toward Tax Compliance
This study aims to examine the effect of tax penalties, trust in the tax authorities, and tax audit of taxpayer compliance. This research is based on a decrease in tax revenues that still has not reached the target set i...
The Intrinsic Attribute of Digital Currency
With the advent of the fourth industrial revolution, the sharing economy based on Internet, big data analysis, artificial intelligence, and cloud computing came into being. Similarly, Subversive changes in interactive in...