Adams, R. B., & Ferreira, D. (2009). Women in the boardroom and their impact on governance and performance. Journal of Financial Economics, 94(2), 291–309. https://doi.org/10.1016/j.jfineco.2008.10.007
Apesteguia, J., Azmat, G., & Iriberri, N. (2012). The impact of gender composition on team performance and decision making: Evidence from the field. Management Science, 58(1), 78–93. https://doi.org/10.1287/mnsc.1110.1348
Arifin, J., & Wardani, E. A. (2016). Islamic corporat social responsibility disclosure, reputasi, dan kinerja keuangan: Studi pada bank syariah di Indonesia. Jurnal Akuntansi & Auditing Indonesia, 20(1), 38–46. https://doi.org/10.20885/jaai.vol20.iss1.art4
Arshad, R., Othman, S., & Othman, R. (2012). Islamic {Corporate} {Social} {Responsibility}, {Corporate} {Reputation} and {Performance}. International Scholarly and Scientific Research & Innovation, 6(64), 1070. http://search.proquest.com/docview/1349445808?accountid=26646
Asutay, M. (2007). Conceptualisation of the Second Best Solution in Overcoming the Social Failure of Islamic Banking and Finance: Examining the Overpowering of Homoislamicus by Homoeconomicus. IIUM Journal of Economics and Management, 15(2), 167–195.
Asutay, M. (2013). Islamic moral economy as the foundation of Islamic finance. Islamic Finance in Europe: Towards a Plural Financial System, April 2013, 55–63. https://doi.org/10.4337/9781781002513.00014
Bantel, K. A. (1993). Strategic Clarity in Banking: Role of Top Management-Team Demography. Psychological Reports, 73(3), 1187–1201. https://doi.org/10.2466/pr0.1993.73.3f.1187
Bantel, K. A., & Jackson, S. E. (1989). Top management and innovations in banking: Does the composition of the top team make a difference? Strategic Management Journal, 10(1 S), 107–124. https://doi.org/10.1002/smj.4250100709
Carter, D. A., D’Souza, F., Simkins, B. J., & Simpson, W. G. (2010). The Gender and Ethnic Diversity of US Boards and Board Committees and Firm Financial Performance. Corporate Governance: An International Review, 18(5), 396–414. https://doi.org/10.1111/j.1467-8683.2010.00809.x
Carter, D. A., Simkins, B. J., & Simpson, W. G. (2003). Corporate Governance, Board Diversity, and Firm Value. The Financial Review, 38, 33–53. https://doi.org/10.1103/PhysRevD.97.115021
Chambers, C., & Day, R. (2009). The banking sector and CSR: An unholy alliance? Financial Regulation International, 12(9), 13–20. http://eprints.uwe.ac.uk/8349/
Chen, H. K., Liao, Y. C., Lin, C. Y., & Yen, J. F. (2018). The effect of the political connections of government bank CEOs on bank performance during the financial crisis. Journal of Financial Stability, 36, 130–143. https://doi.org/10.1016/j.jfs.2018.02.010
Clarkson, M. B. E. (1995). A Stakeholder Framework for Analyzing and Evaluating Corporate Social Performance. Academy of Management Review, 20(1), 92–117.
Darmadi, S. (2011). Board diversity and firm performance: The indonesian evidence. Corporate Ownership and Control, 8, 1–38. https://doi.org/10.22495/cocv8i2c4p4
Dezso, C. L., & Ross, D. G. (2012). DOES FEMALE REPRESENTATION IN TOP MANAGEMENT IMPROVE FIRM PERFORMANCE? A PANEL DATA INVESTIGATION. Strategic Management Journal, 3(9), 1072–1089. https://doi.org/10.1002/smj
Donaldson, T., & Preston, L. E. (1995). The Stakeholder Theory of the Corporation: Concepts, Evidence, and Implications. Academy of Management Review, 20(1), 65–91.
Eagly, A. H. (2009). The His and Hers of Prosocial Behavior: An Examination of The Social Psychology of Gender. American Psychologist, 34(8), 644–658. https://doi.org/10.1037/0003-066X.64.8.644
Endrikat, J., de Villiers, C., Guenther, T. W., & Guenther, E. M. (2020). Board Characteristics and Corporate Social Responsibility: A Meta-Analytic Investigation. Business and Society, 1–37. https://doi.org/10.1177/0007650320930638
Fauzi, F., & Locke, S. (2012). Board structure, ownership structure and firm performance: A study of New Zealand listed-firms. Asian Academy of Management Journal of Accounting and Finance, 8(2), 43–67.
Fenwick, G. D., & Neal, D. J. (2001). Effect of gender composition on group performance. Gender, Work and Organization, 8(2), 205–225. https://doi.org/10.1111/1468-0432.00129
Freeman, R. E. (1984). Strategic Management: A Stakeholder Approach. Cambridge University Press. https://doi.org/10.1017/CBO9781139192675
Freeman, R. E., & McVea, J. (1984). A Stakeholder Approach to Strategic Management. The Blackwell Handbook of Strategic Management, 183–201. https://doi.org/10.1002/jctb.619
Friedman, M. (1970). Friedman M. The Social Responsibility of Business Is to Increase Its Profits. In: Zimmerli W.C., Holzinger M., Richter K. (eds) Corporate Ethics and Corporate Governance. Springer, Berlin, Heidelberg. The New York Times Magazine, 2–6.
Gaio, C., & Henriques, R. (2020). Social Responsibility and Financial Performance: The Case of STOXX Europe Index. IntechOpen, 0–18. www.intechopen.com
Galbreath, J. (2016). Is Board Gender Diversity Linked to Financial Performance? The Mediating Mechanism of CSR. Business and Society, 57(5), 1–27. https://doi.org/10.1177/0007650316647967
García-Meca, E., García-Sánchez, I. M., & Martínez-Ferrero, J. (2015). Board diversity and its effects on bank performance: An international analysis. Journal of Banking and Finance, 53, 202–214. https://doi.org/10.1016/j.jbankfin.2014.12.002
Gujarati, D. N., & Porter, D. C. (2009). Basic Econometrics (5th ed.). McGraw-Hill/Irwin.
Hambrick, D. C., & Mason, P. A. (1984). Upper Echelons: The Organization as a Reflection of Its Top Managers. Academy of Management Review, 9(2), 193–206. https://doi.org/10.5465/amr.1984.4277628
Hambrick, Donald C. (2007). Upper Echelons Theory: An Update. The Academy of Management Review, 32(2), 334–343. https://doi.org/10.1057/978-1-349-94848-2_785-1
Haniffa, R. (2002). Social Responsibility Disclosure: An Islamic Perspective. In Indonesian Management & Accounting Research (Vol. 1, Issue 2, pp. 128–146).
Hassan, M. K., Rashid, M., Imran, M. Y., & Shahid, A. I. (2010). Ethical Gaps and Market Value in the Islamic Banks of Bangladesh. Review of Islamic Economics, 14(10), 49–75.
Innayah, M. N., Pratama, B. C., & Tubastuvi, N. (2021). Board Diversity and Its Effects on Firm Performance and Risk: A Study in Banking Firms. Journal of Accounting and Investment, 22(1), 206–220. https://doi.org/10.18196/jai.v22i1.10005
Jayne, M. E. A., & Dipboye, R. L. (2004). Leveraging diversity to improve business performance: Research findings and recommendations for organizations. Human Resource Management, 43(4), 409–424. https://doi.org/10.1002/hrm.20033
Karim, R. A. A. (1990). Standard Setting for the Financial Reporting of Religious Business Organisations: The Case of Islamic Banks. Accounting and Business Research, 20(80), 299–305. https://doi.org/10.1080/00014788.1990.9728888
Khan, S. A. R., Yu, Z., Golpîra, H., & Sharif, A. (2019). The nexus between corporate social responsibility and corporate performance: An empirical evidence. Logforum, 15(2), 291–303. https://doi.org/10.17270/J.LOG.2019.328
Ku Ismail, K. N. I., & Abdul Manaf, K. B. (2016). Market reactions to the appointment of women to the boards of Malaysian firms. Journal of Multinational Financial Management, 36(June 2011), 75–88. https://doi.org/10.1016/j.mulfin.2016.04.004
Mallin, C., Farag, H., & Ow-Yong, K. (2014). Corporate social responsibility and financial performance in Islamic banks. Journal of Economic Behavior and Organization, 103(March 2013), 1–18. https://doi.org/10.1016/j.jebo.2014.03.001
Marimuthu, M., & Kolandaisamy, I. (2009). Ethnic and Gender Diversity in Boards of Directors and Their Relevance to Financial Performance of Malaysian Companies. Journal of Sustainable Development, 2(3), 139–148. https://doi.org/10.5539/jsd.v2n3p139
Nishii, L. H., Raver, J. L., & Hall, I. (2007). Upper Echelon Theory Revisited : The Relationship Between Upper Echelon Diversity , the Adoption of Diversity Practices , and Organizational. Working Paper Series 07-04 Cornell University.
Nyamongo, E. M., & Temesgen, K. (2013). The effect of governance on performance of commercial banks in Kenya: A panel study. Corporate Governance: The International Journal of Business in Society, 13(3), 236–248. https://doi.org/10.1108/CG-12-2010-0107
Oppong, S. (2014). Upper Echelons Theory Revisited: The Need for a Change from Causal Description to Causal Explanation. Management: Journal of Contemporary Management, 19(2), 169–183.
Othman, R., Thani, A. M., & Ghani, E. K. (2009). Determinants of Islamic Social Reporting Among Top Shari’a-Approved Companies in Bursa Determinants of Islamic Social Reporting Among Top Shariah -Approved Companies in Bursa Malaysia. Research Journal of Internatıonal Studıes, 12, 4–20.
Pelled, L. H. (1996). Demographic Diversity, Conflict, and Work Group Outcomes: An Intervening Process Theory. Organization Science, 7(6), 615–631. https://doi.org/10.1287/orsc.7.6.615
Perrini, F., Russo, A., Tencati, A., Vurro, C., Journal, S., & Ethics, S. (2011). Deconstructing the Relationship Between Corporate Social and Financial Performance Linked references are available on JSTOR for this article : Deconstructing the Relationship Between Corporate Social. Journal of Business Ethics, 102(May), 59–76. https://doi.org/10.1007/sl0551-01
Pletzer, J. L., Nikolova, R., Kedzior, K. K., & Voelpel, S. C. (2015). Does gender matter? female representation on corporate boards and firm financial performance - A meta-analysis. PLoS ONE, 10(6). https://doi.org/10.1371/journal.pone.0130005
Puchniak, D. W., Kim, K. S., Uchniak, D. A. N. W. P., Aun, H. A. B., Ottage, L. U. K. E. N., & Orthcoming, F. (2017). Varieties of Independent Directors in Asia : A Taxonomy. NUS Working Paper.
Reeves, M. (2020). Women in Business 2020: Putting the Blueprint into Action. Grant Thornton International. https://doi.org/10.4324/9781315669175
Reguera-Alvarado, N., de Fuentes, P., & Laffarga, J. (2017). Does Board Gender Diversity Influence Financial Performance? Evidence from Spain. Journal of Business Ethics, 141(2), 337–350. https://doi.org/10.1007/s10551-015-2735-9
Saeidi, S. P., Sofian, S., Saeidi, P., Saeidi, S. P., & Saaeidi, S. A. (2015). How does corporate social responsibility contribute to firm financial performance? The mediating role of competitive advantage, reputation, and customer satisfaction. Journal of Business Research, 68(2), 341–350. https://doi.org/10.1016/j.jbusres.2014.06.024
Simpson, W. G., & Kohers, T. (2002). The link between corporate social and financial performance: Evidence from the banking industry. Journal of Business Ethics, 35(2), 97–109. https://doi.org/10.1023/A:1013082525900
Waldman, D. A., Javidan, M., & Varella, P. (2004). Charismatic leadership at the strategic level: A new application of upper echelons theory. Leadership Quarterly, 15(3), 355–380. https://doi.org/10.1016/j.leaqua.2004.02.013
Walt, N. van der, & Ingley, C. (2003). Protection by iron against ultraviolet radiation in aquatic habitats: Experimental results in the Tinto river’s environment. Corporate Governance, 11(3), 218–234.
Wang, Y., Yao, C., & Kang, D. (2019). Political connections and firm performance: Evidence from government officials’ site visits. Pacific Basin Finance Journal, 57(May). https://doi.org/10.1016/j.pacfin.2018.05.003
Apesteguia, J., Azmat, G., & Iriberri, N. (2012). The impact of gender composition on team performance and decision making: Evidence from the field. Management Science, 58(1), 78–93. https://doi.org/10.1287/mnsc.1110.1348
Arifin, J., & Wardani, E. A. (2016). Islamic corporat social responsibility disclosure, reputasi, dan kinerja keuangan: Studi pada bank syariah di Indonesia. Jurnal Akuntansi & Auditing Indonesia, 20(1), 38–46. https://doi.org/10.20885/jaai.vol20.iss1.art4
Arshad, R., Othman, S., & Othman, R. (2012). Islamic {Corporate} {Social} {Responsibility}, {Corporate} {Reputation} and {Performance}. International Scholarly and Scientific Research & Innovation, 6(64), 1070. http://search.proquest.com/docview/1349445808?accountid=26646
Asutay, M. (2007). Conceptualisation of the Second Best Solution in Overcoming the Social Failure of Islamic Banking and Finance: Examining the Overpowering of Homoislamicus by Homoeconomicus. IIUM Journal of Economics and Management, 15(2), 167–195.
Asutay, M. (2013). Islamic moral economy as the foundation of Islamic finance. Islamic Finance in Europe: Towards a Plural Financial System, April 2013, 55–63. https://doi.org/10.4337/9781781002513.00014
Bantel, K. A. (1993). Strategic Clarity in Banking: Role of Top Management-Team Demography. Psychological Reports, 73(3), 1187–1201. https://doi.org/10.2466/pr0.1993.73.3f.1187
Bantel, K. A., & Jackson, S. E. (1989). Top management and innovations in banking: Does the composition of the top team make a difference? Strategic Management Journal, 10(1 S), 107–124. https://doi.org/10.1002/smj.4250100709
Carter, D. A., D’Souza, F., Simkins, B. J., & Simpson, W. G. (2010). The Gender and Ethnic Diversity of US Boards and Board Committees and Firm Financial Performance. Corporate Governance: An International Review, 18(5), 396–414. https://doi.org/10.1111/j.1467-8683.2010.00809.x
Carter, D. A., Simkins, B. J., & Simpson, W. G. (2003). Corporate Governance, Board Diversity, and Firm Value. The Financial Review, 38, 33–53. https://doi.org/10.1103/PhysRevD.97.115021
Chambers, C., & Day, R. (2009). The banking sector and CSR: An unholy alliance? Financial Regulation International, 12(9), 13–20. http://eprints.uwe.ac.uk/8349/
Chen, H. K., Liao, Y. C., Lin, C. Y., & Yen, J. F. (2018). The effect of the political connections of government bank CEOs on bank performance during the financial crisis. Journal of Financial Stability, 36, 130–143. https://doi.org/10.1016/j.jfs.2018.02.010
Clarkson, M. B. E. (1995). A Stakeholder Framework for Analyzing and Evaluating Corporate Social Performance. Academy of Management Review, 20(1), 92–117.
Darmadi, S. (2011). Board diversity and firm performance: The indonesian evidence. Corporate Ownership and Control, 8, 1–38. https://doi.org/10.22495/cocv8i2c4p4
Dezso, C. L., & Ross, D. G. (2012). DOES FEMALE REPRESENTATION IN TOP MANAGEMENT IMPROVE FIRM PERFORMANCE? A PANEL DATA INVESTIGATION. Strategic Management Journal, 3(9), 1072–1089. https://doi.org/10.1002/smj
Donaldson, T., & Preston, L. E. (1995). The Stakeholder Theory of the Corporation: Concepts, Evidence, and Implications. Academy of Management Review, 20(1), 65–91.
Eagly, A. H. (2009). The His and Hers of Prosocial Behavior: An Examination of The Social Psychology of Gender. American Psychologist, 34(8), 644–658. https://doi.org/10.1037/0003-066X.64.8.644
Endrikat, J., de Villiers, C., Guenther, T. W., & Guenther, E. M. (2020). Board Characteristics and Corporate Social Responsibility: A Meta-Analytic Investigation. Business and Society, 1–37. https://doi.org/10.1177/0007650320930638
Fauzi, F., & Locke, S. (2012). Board structure, ownership structure and firm performance: A study of New Zealand listed-firms. Asian Academy of Management Journal of Accounting and Finance, 8(2), 43–67.
Fenwick, G. D., & Neal, D. J. (2001). Effect of gender composition on group performance. Gender, Work and Organization, 8(2), 205–225. https://doi.org/10.1111/1468-0432.00129
Freeman, R. E. (1984). Strategic Management: A Stakeholder Approach. Cambridge University Press. https://doi.org/10.1017/CBO9781139192675
Freeman, R. E., & McVea, J. (1984). A Stakeholder Approach to Strategic Management. The Blackwell Handbook of Strategic Management, 183–201. https://doi.org/10.1002/jctb.619
Friedman, M. (1970). Friedman M. The Social Responsibility of Business Is to Increase Its Profits. In: Zimmerli W.C., Holzinger M., Richter K. (eds) Corporate Ethics and Corporate Governance. Springer, Berlin, Heidelberg. The New York Times Magazine, 2–6.
Gaio, C., & Henriques, R. (2020). Social Responsibility and Financial Performance: The Case of STOXX Europe Index. IntechOpen, 0–18. www.intechopen.com
Galbreath, J. (2016). Is Board Gender Diversity Linked to Financial Performance? The Mediating Mechanism of CSR. Business and Society, 57(5), 1–27. https://doi.org/10.1177/0007650316647967
García-Meca, E., García-Sánchez, I. M., & Martínez-Ferrero, J. (2015). Board diversity and its effects on bank performance: An international analysis. Journal of Banking and Finance, 53, 202–214. https://doi.org/10.1016/j.jbankfin.2014.12.002
Gujarati, D. N., & Porter, D. C. (2009). Basic Econometrics (5th ed.). McGraw-Hill/Irwin.
Hambrick, D. C., & Mason, P. A. (1984). Upper Echelons: The Organization as a Reflection of Its Top Managers. Academy of Management Review, 9(2), 193–206. https://doi.org/10.5465/amr.1984.4277628
Hambrick, Donald C. (2007). Upper Echelons Theory: An Update. The Academy of Management Review, 32(2), 334–343. https://doi.org/10.1057/978-1-349-94848-2_785-1
Haniffa, R. (2002). Social Responsibility Disclosure: An Islamic Perspective. In Indonesian Management & Accounting Research (Vol. 1, Issue 2, pp. 128–146).
Hassan, M. K., Rashid, M., Imran, M. Y., & Shahid, A. I. (2010). Ethical Gaps and Market Value in the Islamic Banks of Bangladesh. Review of Islamic Economics, 14(10), 49–75.
Innayah, M. N., Pratama, B. C., & Tubastuvi, N. (2021). Board Diversity and Its Effects on Firm Performance and Risk: A Study in Banking Firms. Journal of Accounting and Investment, 22(1), 206–220. https://doi.org/10.18196/jai.v22i1.10005
Jayne, M. E. A., & Dipboye, R. L. (2004). Leveraging diversity to improve business performance: Research findings and recommendations for organizations. Human Resource Management, 43(4), 409–424. https://doi.org/10.1002/hrm.20033
Karim, R. A. A. (1990). Standard Setting for the Financial Reporting of Religious Business Organisations: The Case of Islamic Banks. Accounting and Business Research, 20(80), 299–305. https://doi.org/10.1080/00014788.1990.9728888
Khan, S. A. R., Yu, Z., Golpîra, H., & Sharif, A. (2019). The nexus between corporate social responsibility and corporate performance: An empirical evidence. Logforum, 15(2), 291–303. https://doi.org/10.17270/J.LOG.2019.328
Ku Ismail, K. N. I., & Abdul Manaf, K. B. (2016). Market reactions to the appointment of women to the boards of Malaysian firms. Journal of Multinational Financial Management, 36(June 2011), 75–88. https://doi.org/10.1016/j.mulfin.2016.04.004
Mallin, C., Farag, H., & Ow-Yong, K. (2014). Corporate social responsibility and financial performance in Islamic banks. Journal of Economic Behavior and Organization, 103(March 2013), 1–18. https://doi.org/10.1016/j.jebo.2014.03.001
Marimuthu, M., & Kolandaisamy, I. (2009). Ethnic and Gender Diversity in Boards of Directors and Their Relevance to Financial Performance of Malaysian Companies. Journal of Sustainable Development, 2(3), 139–148. https://doi.org/10.5539/jsd.v2n3p139
Nishii, L. H., Raver, J. L., & Hall, I. (2007). Upper Echelon Theory Revisited : The Relationship Between Upper Echelon Diversity , the Adoption of Diversity Practices , and Organizational. Working Paper Series 07-04 Cornell University.
Nyamongo, E. M., & Temesgen, K. (2013). The effect of governance on performance of commercial banks in Kenya: A panel study. Corporate Governance: The International Journal of Business in Society, 13(3), 236–248. https://doi.org/10.1108/CG-12-2010-0107
Oppong, S. (2014). Upper Echelons Theory Revisited: The Need for a Change from Causal Description to Causal Explanation. Management: Journal of Contemporary Management, 19(2), 169–183.
Othman, R., Thani, A. M., & Ghani, E. K. (2009). Determinants of Islamic Social Reporting Among Top Shari’a-Approved Companies in Bursa Determinants of Islamic Social Reporting Among Top Shariah -Approved Companies in Bursa Malaysia. Research Journal of Internatıonal Studıes, 12, 4–20.
Pelled, L. H. (1996). Demographic Diversity, Conflict, and Work Group Outcomes: An Intervening Process Theory. Organization Science, 7(6), 615–631. https://doi.org/10.1287/orsc.7.6.615
Perrini, F., Russo, A., Tencati, A., Vurro, C., Journal, S., & Ethics, S. (2011). Deconstructing the Relationship Between Corporate Social and Financial Performance Linked references are available on JSTOR for this article : Deconstructing the Relationship Between Corporate Social. Journal of Business Ethics, 102(May), 59–76. https://doi.org/10.1007/sl0551-01
Pletzer, J. L., Nikolova, R., Kedzior, K. K., & Voelpel, S. C. (2015). Does gender matter? female representation on corporate boards and firm financial performance - A meta-analysis. PLoS ONE, 10(6). https://doi.org/10.1371/journal.pone.0130005
Puchniak, D. W., Kim, K. S., Uchniak, D. A. N. W. P., Aun, H. A. B., Ottage, L. U. K. E. N., & Orthcoming, F. (2017). Varieties of Independent Directors in Asia : A Taxonomy. NUS Working Paper.
Reeves, M. (2020). Women in Business 2020: Putting the Blueprint into Action. Grant Thornton International. https://doi.org/10.4324/9781315669175
Reguera-Alvarado, N., de Fuentes, P., & Laffarga, J. (2017). Does Board Gender Diversity Influence Financial Performance? Evidence from Spain. Journal of Business Ethics, 141(2), 337–350. https://doi.org/10.1007/s10551-015-2735-9
Saeidi, S. P., Sofian, S., Saeidi, P., Saeidi, S. P., & Saaeidi, S. A. (2015). How does corporate social responsibility contribute to firm financial performance? The mediating role of competitive advantage, reputation, and customer satisfaction. Journal of Business Research, 68(2), 341–350. https://doi.org/10.1016/j.jbusres.2014.06.024
Simpson, W. G., & Kohers, T. (2002). The link between corporate social and financial performance: Evidence from the banking industry. Journal of Business Ethics, 35(2), 97–109. https://doi.org/10.1023/A:1013082525900
Waldman, D. A., Javidan, M., & Varella, P. (2004). Charismatic leadership at the strategic level: A new application of upper echelons theory. Leadership Quarterly, 15(3), 355–380. https://doi.org/10.1016/j.leaqua.2004.02.013
Walt, N. van der, & Ingley, C. (2003). Protection by iron against ultraviolet radiation in aquatic habitats: Experimental results in the Tinto river’s environment. Corporate Governance, 11(3), 218–234.
Wang, Y., Yao, C., & Kang, D. (2019). Political connections and firm performance: Evidence from government officials’ site visits. Pacific Basin Finance Journal, 57(May). https://doi.org/10.1016/j.pacfin.2018.05.003
- Abstract viewed - 244 times
- pdf downloaded - 202 times
Affiliations
Maulida Nurul Innayah
Universitas Muhammadiyah Purwokerto
Rifka Utami Arofah
Universitas Muhammadiyah Purwokerto
Bima Cinintya Pratama
Universitas Muhammadiyah Purwokerto
How to Cite
1.
Innayah M, Arofah R, Pratama B. Does Social Responsibility Affect Performance of Islamic Bank in Indonesia? The Role of Board Diversity. MAJ [Internet]. 28Jun.2023 [cited 19Nov.2024];12(2):232-41. Available from: http://journal.unnes.ac.id/sju/maj/article/view/66677
Does Social Responsibility Affect Performance of Islamic Bank in Indonesia? The Role of Board Diversity
Vol 12 No 2 (2023): Management Analysis Journal
Submitted: Mar 30, 2023
Published: Jun 28, 2023
Abstract
According to Islamic teachings, banking is expected to have social goodness, environmental concern, and ethical behavior. Islamic banking is a company that supports the smooth running of the economy; thus, Islamic banks are expected to be more socially responsible. This study examines the moderating effect of board diversity on the relationship between social responsibility and the performance of Islamic banking in Indonesia. The population in this study are Islamic banking companies in Indonesia whose data is obtained from the company's annual report. The sampling technique used in this study was purposive sampling. The sample in the study consisted of 136 firm-year observations for 16 registered Islamic banks in Indonesia. Using panel data regression testing, the results show that social responsibility positively affects the performance of Islamic banking in Indonesia. The results of this study are in line with stakeholder theory which explains that Islamic banking companies try to meet different stakeholder expectations, one of which is by carrying out Islamic social responsibility to increase stakeholder trust, which has an impact on improving firm performance. However, the results of this study found that female directors in Indonesia are a minority, so their existence cannot improve the management of social responsibility and performance of Islamic banking.