| By: |
Tettet Fitrijanti (Padjajaran University, Dipati Ukur Street No. 35, 40132, Bandung, Indonesia Author-2-Name: Winwin Yadiati Author-2-Workplace-Name: Padjajaran University, Dipati Ukur Street No. 35, 40132, Bandung, Indonesia Author-3-Name: Author-3-Workplace-Name: Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:) |
| Abstract: |
Objective - One of the operational objectives of sharia banks is to comply
with sharia principles. Therefore, the non-compliance of sharia banks to
sharia law may be prevented by implementing Islamic Good Corporate Governance
(GCG), which is controlled by the Sharia Supervisory Board (SSB), the board of
directors, and the board of management. Methodology/Technique - In this study,
sharia non-compliance is defined as all cases of disobedience found in the
report of sharia banks, covering things such as non-halal income, criminal law
violations, civil law violations, and fraud. The unit of analysis of this
research is sharia banks in Indonesia. Seven sharia banks were used as the
study sample for the period between 2012 and 2015. The source of data for this
study comprised of GCG annual reports. The data analysis method and hypothesis
testing was conducted using a factor analysis and multiple regression
analysis. Findings - The findings show that higher levels of supervision from
the SSB tend to minimize the instanc of sharia non-compliance as a whole,
criminal and civil law violations, and fraud, although not to a level that is
statistically significant. The influence of the board of management on
non-halal income was negative, although statistically insignificant. The
influence of the supervision from both the board of directors and the board of
management on overall sharia non-compliance is also not statistically
significant. Novelty - The influence of the board of management on non-halal
income was negative, although statistically insignificant. The influence of
the supervision from both the board of directors and the board of management
on overall sharia non- compliance is also not statistically significant. |