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The determinants of Islamic governance disclosure: the case of Indonesian Islamic banks

Ahmad Nurkhin, Agus Wahyudin, Hasan Mukhibad, Fachrurrozie, Satsya Yoga Baswara

Banks and Bank Systems
License: CC BY 3.0

Abstract: This paper aims to examine the determinants of Islamic Governance Disclosure (IGD) in Islamic banks in Indonesia. The research method used is a quantitative approach involving Islamic commercial banks in Indonesia, where their annual reports can be accessed during the 2011–2018 observation period. The data collection methods used are analysis of documentation and content analysis. Content analysis was used to calculate the IGD index. Path analysis with WarpPLS software was used to analyze data. The results show that the number of members of the Sharia supervisory board had a negative and significant effect on IGD, while leverage, size, and age can influence the IGD positively and significantly. In addition, institutional ownership has a negative and significant effect on IGD. Profitability and composition of the independent board of commissioners do not significantly affect the IGD.

Published on 18 Dec. 2019