The Determinants of Islamic Social Reporting Disclosure in Indonesia

GATR Acc. Fin. Review 4 (1) 05–14 (2019)

10 Pages Posted: 1 May 2019

See all articles by Tri Nofik Indayani

Tri Nofik Indayani

Airlangga University - Faculty of Economics and Business

Puji Sucia Sukmaningrum

Airlangga University

Achsania Hendratmi

Airlangga University

Sylva Alif Rusmita

Airlangga University - Faculty of Economics and Business

Date Written: March 18, 2019

Abstract

Objective – The purpose of this research is to identify the relationship between corporate performance, Good Corporate Governance (GCG), and corporate characteristics on Islamic Social Reporting disclosure in Indonesia.

Methodology/Technique – A quantitative approach is applied in this research. The sample of this study consists of companies that were consistently listed on the Jakarta Islamic Index (JII) from 2012 to 2017. A purposive sampling method with certain criteria was employed to produce a total of 72 samplings. Partial Least Square (PLS) was also used to analyse the data.

Findings – The results of this research indicate that corporate performance has a positive and significant effect on ISR disclosure, GCG has a positive and significant effect on ISR disclosure, and corporate characteristics have a negative and insignificant effect on ISR disclosure.

Novelty – Islamic Social Reporting is the answer and solution to the needs of the interested parties concerned with the company's financial statements. ISR becomes a very important thing for the reputation and performance of Islamic financial institutions. Islamic financial institutions that succeed in revealing their ISR value will be perceived as a reliable entity by the Muslim community in channeling their fund.

Type of Paper – Empirical.

Keywords: Islamic Social Reporting; Corporate Performance; Good Corporate Governance; Corporate Characteristics

JEL Classification: M40; M41; M49

Suggested Citation

Indayani, Tri Nofik and Sukmaningrum, Puji and Hendratmi, Achsania and Rusmita, Sylva Alif, The Determinants of Islamic Social Reporting Disclosure in Indonesia (March 18, 2019). GATR Acc. Fin. Review 4 (1) 05–14 (2019), Available at SSRN: https://ssrn.com/abstract=3362349

Tri Nofik Indayani

Airlangga University - Faculty of Economics and Business

Airlangga 4-6
Surabaya, East Java
Indonesia

Puji Sukmaningrum (Contact Author)

Airlangga University ( email )

Jl. Darmawangsa Dalam 2
Surabaya, 60286
Indonesia

Achsania Hendratmi

Airlangga University ( email )

Jl. Darmawangsa Dalam 2
Surabaya, 60286
Indonesia

Sylva Alif Rusmita

Airlangga University - Faculty of Economics and Business

Airlangga 4-6
Surabaya, East Java
Indonesia

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