PENGARUH ISLAMIC CORPORATE GOVERNANCE TERHADAP KINERJA KEUANGAN BANK UMUM SYARIAH PERIODE 2017-2021

Abstract

Compliance with sharia is one of the most important aspects of Sharia-compliant commercial bank governance in Indonesia, which distinguishes it from conventional commercial bank governance. The purpose of this research is to determine the impact of Islamic corporate governance on the financial performance of Indonesian Islamic commercial banks. In this study, Islamic corporate governance is the independent variable, whereas financial performance is the dependent variable. This study's population included all Islamic Commercial Banks registered with the OJK between 2017 and 2021, which could include up to 15 banks. Purposive sampling was employed to select samples. With such a 5-year research period, 9 Islamic commercial banks were utilized as samples. Partial Least Squares is the data analysis method, and Smart-PLS is the analysis tool. This study employs a quantitative method that makes use of secondary data in the form of an annual report on Islamic Commercial Banks. According to the findings of this study, Islamic corporate governance has a positive and significant impact on the financial performance of Islamic commercial banks in Indonesia.