Muqtasid: Jurnal Ekonomi dan Perbankan Syariah

Repositioning Islamic social reporting as a strategic moderator: Evidence from Indonesian Islamic banks

2025-02-23T08:30:33+00:00

This study aims to assess the effect of Islamic Social Reporting (ISR) on the relationship between financial performance and firm value in Indonesian Islamic banks. This study utilizes the Moderated Regression Analysis model, with ISR serving as the moderating variable, financial performance metrics (Financing to Deposit Ratio [FDR], Return on Assets [ROA], and Capital Adequacy Ratio [CAR]) as the independent variables, and firm value (EVA) as the dependent variable. The study focuses on ten Islamic commercial banks in Indonesia from 2017 to 2023 and is based on the analysis of 70 annual financial reports, utilizing Moderated Regression Analysis. The findings indicate that ISR significantly moderates and strengthens the relationship between ROA and EVA. This underscores the critical role of ISR reporting in helping regulators develop a more comprehensive framework and in reinforcing the industry’s adherence to Islamic economic principles. By exploring the nuanced role of ISR in amplifying financial signals like ROA, this study subtly repositions ISR from a mere reporting obligation to a strategic element that deepens the value relevance of Islamic financial disclosures.

Assessing financial metrics and Sharia Healthcare stock return amid Indonesia’s market volatility

2025-01-13T12:41:59+00:00

The present research aims to analyze how financial metrics reflecting profitability, liquidity, and solvency affect the profit performance of sharia-compliant equities in the healthcare industry amid the COVID-19 pandemic. This investigation employs a panel data regression methodology, utilizing a sample of medical services businesses that are publicly traded on the Indonesia Stock Exchange throughout this time frame from 2020 to 2022. The estimation model applied is the Fixed Effect Model (FEM) using Eviews 13 software. Hypothesis testing is conducted using t-tests and F-tests to ensure the robustness of the results. The findings reveal that simultaneously, ROA, ROE, EPS, NPM, CR, and DER have a significant effect on the return of sharia healthcare stocks. Partially, the results of this study show that EPS, CR, and DER have a significant effect on the return of sharia healthcare stocks. ROA, ROE, and NPM metrics had no substantial statistical implications. Theoretically, this study enriches the Islamic financial literature by showing that some financial ratios can affect Islamic stocks differently than conventional stocks during crises. In practical terms, these findings provide valuable insights for financial professionals to refine investment strategies, particularly in the healthcare sector during market volatility.

Determinants of the proportion of investment financing in Islamic banking business units in Indonesia

2025-01-13T12:47:58+00:00

Islamic banking in Indonesia has experienced rapid development, with Islamic Banking Business Units (UUS) offering an alternative Sharia-based financial system known as financing. However, the distribution of financing by Islamic banks remains predominantly consumptive rather than productive, with a direct connection to the real sector, such as investment financing, whose proportion or ratio to total financing disbursed diminishes annually. This study seeks to analyze the impact of internal and external factors on the proportion of investment financing in the UUS, including the Financing to Deposit Ratio (FDR), Investment Financing Margin, Non-Performing Financing (NPF), inflation, Gross Domestic Product (GDP), and the Certificate bonus Bank Indonesia Syariah (SBIS). The data period for this study spans from January 2018 to December 2023. The methodology employed in this study is the Vector Error Correction Model (VECM). The VECM analysis indicates that, in the short term, only the SBIS bonus variable significantly affects the proportion of investment financing. In the long term, GDP, inflation, and SBIS significantly influence the proportion of investment financing. UUS must develop strategies that are adaptive to external variables such as inflation, GDP, and SBIS. Additionally, UUS should promote accelerated growth in FDR and Margin.

Determinant of sharia rural bank profitability: Do size and location matter?

2025-01-13T13:00:01+00:00

This research analyzes the influence of bank fundamentals, bank size, location, and macroeconomic variables on the profitability of Sharia Rural Banks (SRBs) in Indonesia. Our study investigates 90 banks located on the island of Java. The research period is 2018-2021, using quarterly data. The dynamic panel regression is employed with a GMM method. The findings indicate that strong bank fundamentals, as indicated by large assets, high CAR, and high efficiency, have a positive effect on profitability. There are two other interesting findings in this study. First, large SRBs encourage high profitability. Second, locations with high economic growth and high religiosity foster profitability. Some policy implications can be drawn from our findings. First, SRB must have sufficient capital and a high level of efficiency to increase profitability. Second, a large SRB is the best choice for an SRB to have sound financial performance. Third, SBRs must intensively introduce Sharia banking products to the public to increase their performance because religiosity is an important factor in determining profitability.

Assessing willingness to pay for Sharia general insurance in Indonesia: A case study of the Jabodetabek region

2025-02-23T08:31:21+00:00

This study explores the willingness to pay (WTP) for Sharia general insurance in Jabodetabek, Indonesia, where adoption remains low. The objective is to assess how gender, residence, age, education, occupation, and income influence WTP. Using a quantitative approach, data were collected from 250 respondents through a structured questionnaire. The analysis involved descriptive statistics, cross-tabulation, and chi-square tests. Results indicate that gender, age, and income significantly affect WTP, with higher WTP observed among men, older individuals, and those with higher incomes. Conversely, residence, education, and occupation do not significantly impact WTP. The findings suggest that Sharia insurance providers should tailor products and educational efforts to better align with different demographic groups’ financial capabilities and needs. These insights are crucial for enhancing the adoption of Sharia general insurance in the region.