The Covid-19’s Impact on Sharia banks in Southeast Asia: Islamicity Performance Index, Intellectual Capital, and Islamic Corporate Governance
(1) University of Darussalam Gontor
(2) International Islamic University Malaysia
(3) University of Darussalam Gontor
(*) Corresponding Author
Abstract
The COVID-19 pandemic has impacted Islamic banking in Southeast Asia, with corporate governance playing a crucial part in handling and controlling companies. This research studies the influence of issues such as Intellectual Capital, Islamic Income vs. Non- Islamic Income Ratio, and Zakat Performance Ratio on Islamic Corporate Governance in the region post-pandemic. The present research employs quantitative research techniques that depend on secondary data. To gather the necessary data, a documentation approach was adopted, involving the examination of annual reports from Islamic banks in Southeast Asia. Data was acquired through the utilization of a panel data regression model operated by Eviews 12. Findings suggest that intellectual capital and the Islamicity performance index are key drivers of ICG. To improve governance, Islamic banking institutions should focus on preserving intellectual capital and enhancing their Islamicity performance. Continuous efforts to enhance ICG are critical for dealing with global concerns in the aftermath of COVID-19.
Keywords
Full Text:
PDFReferences
Abadi, M. K. R., & Bin Annuar, H. A. (2023). Financial Behaviour, Financial Self Efficacy and Intention to Invest in Cryptocurrency. Al Tijarah, 9(2), 120–135. https://doi.org/10.21111/at.v9i2.11186
Abd Razak, A. H. (2019). Multiple Sharia’ board directorship: a Maslahah (public interest) perspective.Journal of Islamic Marketing https://doi.org/10.1108/jima-10-2018-0185
Ajili, H., & Bouri, A. (2018). Assessing the moderating effect of Shariah Board on the relationship between financial performance and accounting disclosure. Managerial Finance, 44(5), 570–589. https://doi.org/10.1108/MF-05-2017-0192
Akkas, E., & Asutay, M. (2023). The impact of intellectual capital formation and knowledge economy on banking performance : a case study of GCC’s conventional and Islamic banks. Journal of Financial Reporting and Accounting, 21(5), 1149–1170. https://doi.org/10.1108/JFRA-08-2021-0251
Al-Gamrh, B., Ku Ismail, K. N. I., Ahsan, T., & Alquhaif, A. (2020). Investment opportunities, corporate governance quality, and firm performance in the UAE. Journal of Accounting in Emerging Economies, 10(2), 261–276. https://doi.org/10.1108/JAEE-12-2018-0134
Al Farooque, O., Buachoom, W., & Sun, L. (2020). Board, audit committee, ownership and financial performance – emerging trends from Thailand. Pacific Accounting Review, 32(1), 54–81. https://doi.org/10.1108/PAR-10-2018-0079
AlQashouti, B. M., & Shirazi, N. S. (2024). Islamicity indices: an extensive systematic literature review. Journal of Islamic Accounting and Business Research, 15(2), 327–341. https://doi.org/10.1108/JIABR-06-2022-0158
Altin, D., Nurazi, R., Santi, F., & Syaiful, S. (2022). Board Diversity And Risk-Taking: Empirical Evidence Of Indonesian Banking Industry. Integrated Journal of Business and Economics, 6(1), 57. https://doi.org/10.33019/ijbe.v6i1.440
Ascarya, A., & Sakti, A. (2022). Designing micro-fintech models for Islamic micro financial institutions in Indonesia. International Journal of Islamic and Middle Eastern Finance and Management, 15(2), 236–254. https://doi.org/10.1108/IMEFM-05-2020-0233
Azwirman, Zulhelmy, & Suryadi, A. (2019). Analysis of islamicity performance index on sharia banks in Indonesia. International Journal of Innovation, Creativity and Change, 10(3), 25–36.
Boudawara, Y., Toumi, K., Wannes, A., & Hussainey, K. (2023). Shari’ah governance quality and environmental, social and governance performance in Islamic banks. A cross-country evidence. Journal of Applied Accounting Research, 24(5), 1004– 1026. https://doi.org/10.1108/JAAR-08-2022-0208
Buallay, A. (2019a). Corporate governance, Sharia’ah governance and performance: A cross-country comparison in MENA region. International Journal of Islamic and Middle Eastern Finance and Management, 12(2), 216–235. https://doi.org/10.1108/IMEFM-07-2017-0172
Buallay, A. (2019b). Intellectual capital and performance of Islamic and conventional banking Empirical evidence from Gulf Cooperative Council countries. Journal of Management Development, 38(7), 518–537. https://doi.org/10.1108/JMD-01-2019-0020
Buallay, A., Cummings, R., & Hamdan, A. (2019). Intellectual capital efficiency and bank’s performance. Pacific Accounting Review, 31(No 4), 672–694. https://doi.org/10.1108/PAR-04-2019-0039
El-Halaby, S., & Hussainey, K. (2016). Determinants of compliance with AAOIFI standards by Islamic banks. International Journal of Islamic and Middle Eastern Finance and Management, 9(1), 143–168. https://doi.org/10.1108/IMEFM-06-2015-0074
Farooque, O. Al, AlObaid, R. O. H., & Khan, A. A. (2023). Does intellectual capital in Islamic banks outperform conventional banks ? Evidence from GCC countries. Asian Review of Accounting, 31(5), 805–831. https://doi.org/10.1108/ARA-12- 2022-0298
Hartini, T., Lidyah, R., & Safitri, N. (2024). The comparison of Islamic and conventional banking in ownership structure and interest rates in Indonesia. Integrated Journal of Business and Economics, 8(1), 652. https://doi.org/10.33019/ijbe.v8i1.688
Harun, M. S., Hussainey, K., Mohd Kharuddin, K. A., & Farooque, O. Al. (2020). CSR Disclosure, Corporate Governance and Firm Value: a study on GCC Islamic Banks. International Journal of Accounting and Information Management, 28(4), 607–638. https://doi.org/10.1108/IJAIM-08-2019-0103
Khan, I., & Zahid, S. N. (2020). The impact of Shari’ah and corporate governance on Islamic banks performance: evidence from Asia. International Journal of Islamic and Middle Eastern Finance and Management, 13(3), 483–501. https://doi.org/10.1108/IMEFM-01-2019-0003
Liestyowati, L. (2024). Islamic Ethics in Business and Finance: Implication for Corporate Governance and Responsibility. Accounting Studies and Tax Journal (COUNT), 1(3), 195–213. https://doi.org/10.62207/h5emhx78
Mamatzakis, E., Alexakis, C., Yahyaee, K. Al, & Pappas, V. (2023). Does corporate governance affect the performance and stability of Islamic banks ? Corporate Governance, 23(4), 888–919. https://doi.org/10.1108/CG-05-2022-0217
Maulana, H., Razak, D. A., & Adeyemi, A. A. (2018). Factors influencing behaviour to participate in Islamic microfinance. International Journal of Islamic and Middle Eastern Finance and Management, 11(1), 109–130. https://doi.org/10.1108/IMEFM-05-2017-0134
Meutia, I., & Kartasar, S. F. (2023). Eco-Efficiency and Financial Performance: Empirical Evidence of Companies in Indonesia. Integrated Journal of Business and Economics, 7(3), 548. https://doi.org/10.33019/ijbe.v7i3.739
Mutamimah, M., & Saputri, P. L. (2023). Corporate governance and financing risk in Islamic banks in Indonesia. Journal of Islamic Accounting and Business Research, 14(3), 435–450. https://doi.org/10.1108/JIABR-09-2021-0268
Nugraha, E., Nugroho, L., Lindra, C., & Sukiati, W. (2020). Maqashid Sharia Implementation in Indonesia and Bahrain. Etikonomi, 19(1), 155–168. https://doi.org/10.15408/etk.v19i1.14655
Pahlevi, R. W. (2023). Mapping of Islamic corporate governance research: a bibliometric analysis. Journal of Islamic Accounting and Business Research, 14(4), 538–553. https://doi.org/10.1108/JIABR-12-2021-0314
Riani, D., & Maulani, D. (2021). Determinants of Banking Efficiency For Commercial Banks In Indonesia: Two-Stage Data Envelopment Analysis. Integrated Journal of Business and Economics, 5(3), 258. https://doi.org/10.33019/ijbe.v5i3.369
Rosavina, M., Rahadi, R. A., Kitri, M. L., Nuraeni, S., & Mayangsari, L. (2019). P2P lending adoption by SMEs in Indonesia. Qualitative Research in Financial Markets, 11(2), 260–279. https://doi.org/10.1108/QRFM-09-2018-0103
Singh, K., & Pillai, D. (2022). Corporate governance in small and medium enterprises: a review. Corporate Governance (Bingley), 22(1), 23–41. https://doi.org/10.1108/CG-10-2020-0470
Sriyono, S., Supardi, S., Prapanca, D., & Sofi, H. N. (2022). Creating Integrated Financial Statements through Good Corporate Governance: The Active Role of Earning Management as an Intervening Variable. Integrated Journal of Business and Economics, 6(3), 255. https://doi.org/10.33019/ijbe.v6i3.555
Sulistyowati, Othman, A., Halim, A., Noor, M., Saladin, M., Rasool, A., Azizah, U. S. Al, Rito, Choirin, M., Abbas, S. Z. M., Sulaiman, S., Bakar, N. A., Asmalia, S.,Kasri, R. A., Ahsan, A., Shaikh, S. A., Manara, A. S., Permata, A. R. E., Pranjoto,R. G. H., … Lilik Rahmawati. (2018). Enhancing Zakat Framework of Maldives: A Hundred Muslim Country. International Journal of Zakat, 3(3), 1–12.
Tahiri Jouti, A. (2019). An integrated approach for building sustainable Islamic social finance ecosystems. ISRA International Journal of Islamic Finance, 11(2), 246– 266. https://doi.org/10.1108/IJIF-10-2018-0118
Ullah, S., Haroon, M., Hussain, S., & Rehman, A. U. (2023). Islamic labelling and corporate governance: a perspective of Shariah compliance firms. Journal of Islamic Accounting and Business Research, 14(6), 849–867. https://doi.org/10.1108/JIABR-03-2021-0108
Wahyuni, S., Pujiharto, P., Pratama, B. C., & Azizah, S. N. (2023). Analysis of the rate of growth of intellectual capital ability in predicting present and future profitability of Sharia commercial banks in Indonesia. Asian Journal of Accounting Research, 8(2), 194–206. https://doi.org/10.1108/AJAR-10-2021-0226
DOI: http://dx.doi.org/10.33019/ijbe.v9i1.937
Article Metrics
Abstract view : 150 timesPDF - 21 times
Refbacks
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution 4.0 International License.
Integrated Journal of Business and Economics is licensed under a Creative Commons Attribution 4.0 International License.
