Analysis of The Effect of Islamic Social Reporting (ISR) Disclosure on Company Financial Performance: Study at Listed Companies in Jakarta Islamic Index (JII) Period 2010-2017

Abstract

The purpose of this study is to obtain empirical evidence about the effect of the level of disclosure of Islamic Social Reporting (ISR) on Company Financial Performance at listed Companies in JII 2010-2017. The sampling technique used in this study was purposive sampling. The analytical tool used to test the hypothesis was path analysis. The result of this research show that; Disclosure of Islamic Social Reporting (ISR) and sales growth have a simultaneous effect on Return On Equity (ROE), its means the better the disclosure of ISR and the higher of the sales growth the higher the Return on Equity or the higher financial performance of the companies.

Keywords: islamic social reporting (ISR); sales growth; return on equity (ROE)

JEL Classification: M41