Maintaining Employees’ Morality to Improve Internal Control in the Sharia Microfinance Institution

Problems of fraud committed by a company’s internal party are hitherto still problematic to figure out, including in sharia microfinance institutions. This research examines the benefit of maintaining employees’ morality for the improvement of internal control in sharia microfinance institutions. The object of this research is Anda BMT (sharia microfinance institution in Indonesia). The research uses a qualitative method. The data were obtained by interviewing the managers and twenty employees, and also through field observations for four months. The result of this research shows that the management needs to improve the employees’ morality as it is the key element to prevent fraud act. The efforts made to improve the employees’ morality are like praying together, joining a program of Islamic study once a week, and targeting all employees to read the Quran at least One Day One Juz (ODOJ). Islamic religious activities should be applied to sharia financial institutions in order to improve the employees’ morality and to diminish the act of fraud. It is because the employees who properly carry out Islamic religious activities may reduce the potency of fraud

THE ROLE OF SHARIA SUPERVISORY BOARDS IN MEETING MAQASID SYARIAH – STUDY ON ISLAMIC BANKS IN INDONESIA

Islamic and conventional banks have real operational differences, so it would be better to measure the performance of these two kinds of banks with different tools. One alternative performance measure is Maqasid Syariah. The research has been conducted to prove whether the Corporate Governance, Sharia Supervisory Boards (SSB), and Corporate Ethics have contributed to the achievement of Maqasid Syariah. The research sample is commercial Islamic banks in Indonesia with an observation period from 2009-2017. The data processing uses Equation Model Structure. The result studies are Maqasid Syariah have not yet become a matter of concern for Islamic banks in Indonesia. This fact is proven by the lack of any role for the corporate governance and SSB in ensuring that Maqasid Shariah are met. Corporate Governance have a positive influence on profitability. Islamic banking makes a positive contribution to Corporate Ethics, and has a positive effect on profitability and Maqasid Syariah

Determinan yang Mempengaruhi Financial Performance pada Perusahaan Asuransi Umum Syariah di Indonesia

The aims of this research are to identify the impact of size, leverage, age, volume of capital growth, tabarru’ funds, independent commissioner ratio, and investment growth on the financial performance in Sharia Non-Life Insurance Company in Indonesia during 2015-2017. The samples obtain 63 units of analysis are selected using purposive sampling method. The data is analysed using descriptive statistical analysis and panel data regressing in E Views 9. Result of this study indicate that size, age, and volume of capital growth have a positively and significantly effect. Investment growth have a negatively and significantly effect. Meanwhile, leverage, tabarru’ fuds and independent commissioner ratio do not have significant effect on the financial performance. Suggestion in this research is the following researchers are expected to extend the duration of the study, so the results of the study become more accurate.[Penelitian ini mempunyai tujuan untuk mengidentifikasi adanya pengaruh size (ukuran perusahaan), leverage (rasio hutang), age (umur perusahaan), pertumbuhan volume of capital, dana tabarru’, rasio komisaris indepeden, dan pertumbuhan investasi pada financial performance perusahaan asuransi umum syariah di Indonesia periode tahun 2015-2017. Metode penentuan sampel dalam penelitian ini yaitu metode purposive sampling dan didapatlan hasil sebanyak 63 unit analisis. Analisis data dalam studi ini yaitu analisis deskriptif dan analisis regresi data panel dengan menggunakan tool E Views 9. Penelitian ini menghasilkan bahwa size (ukuran perusahaan), age (umur perusahaan), dan pertumbuhan volume of capital mempunyai pengaruh positif dan signifikan terhadap financial performance. Sementara itu, pertumbuhan investasi mempunyai pengaruh dengan arah negatif dan signifikan pada financial performance, sedangkan leverage (rasio hutang), dana tabarru’, dan rasio komisaris independen tidak mempengaruhi financial performance. Saran dalam penelitian ini untuk menghasilkan penelitian lebih akurat maka sebaiknya penelitian selanjutnya dilakukan dalam jangka waktu yang lebih panjang.

Determinant of Islamic Social Reporting (ISR) Disclosure

The aims of this research is to analyze the effect of firm size, debt ratio, syirkah fund ratio, funding growth and independent board of commissioners on the influence of Islamic Social Reporting disclosure in Islamic Banking. Population in this research is Islamic Banks in Indonesia during 2012-2017. Samples are selected using purposive sampling method and obtain 54 units of analysis. Data is analysed using decriptive statistical analysis and panel regressing in EViews 9. Results of this study indicate that firm size and syirkah fund ratio have a positively and significant effect. Meanwhile, funding growth has negatively and significant effect, while debt ratio and independent board of commissioner do not have significant effect on the influence of ISR disclosure. Suggestion in this research for Islamic Banks can increase Islamic Social Reporting disclosure, especially on finance and investment theme. In addition, for the government should make specific standard of Islamic Social Reporting disclosure. Keywords: Islamic Social Reporting (ISR), Firm Size, Debt Ratio, Syirkah Fund Ratio, Funding Growth, Independent Board of Commissioners

Fundamental Factors of Financial Ratios and Discretionary Accruals in Influencing the Companies’ Fixed-Asset Investment Decisions

Research aims: This study aims to empirically prove the influence of profitability, solvency, liquidity, activity, dividend policy, and discretionary accruals on fixed-asset investment decisions.Design/Methodology/Approach: The researchers used consumer goods companies listed on the Indonesia Stock Exchange (IDX) from 2013 to 2019. Using the purposive sampling method, this study resulted in 163 bank-year observations. The data were then analyzed utilizing a fixed-effect model.Research findings: The results showed that profitability, liquidity, activity, and discretionary accruals positively affected fixed-asset investment. Meanwhile, the dividend policy negatively affected fixed-asset investment. This study strengthens the pecking order theory. In addition, the research sample used internal funds as a funding source for investment in fixed assets.Theoretical contribution/Originality: The variable added in the study distinguishing it from previous researchers is the discretionary accrual variable. Discretionary accruals have been proven to impact resource allocation, one of which is investment decisions. The additional discretionary accruals variable is expected to strengthen the influence of the consumer goods companies' fundamental factors on investment decisions in fixed assets.Practitioner/Policy implication: Investment in fixed assets in the consumer goods companies uses internal funds because these funds are low risk and support the company's sustainability.Research limitation/Implication: This study used dividend policy as one of the independent variables, and companies that did not distribute dividends could not be sampled

PERAN DEWAN PENGAWAS SYARIAH DALAM PENGUNGKAPAN ISLAMIC SOSIAL REPORTING

Abstract: The role of the Sharia Supervisory Board in Islamic Social Reporting Disclosures. This study aims to empirically prove the role of the Sharia Supervisory Board (SSD) on the disclosure of Islamic Social Responsibility (ISR). The method used is the analysis of Partial Least Square (PLS) with Islamic Commercial Banks (ICB) in Indonesia as a sample. The result shows that the number of SSD is the strongest factor in ISR disclosure. This happens because SSD has a holistic role, namely increasing sharia compliance, financial and social performance. In addition, SSD’'s understanding of contemporary economic and financial laws will affect the performance of the bank, both financial and social

THE RELATIONSHIP BETWEEN HUMAN CAPITAL INVESTMENT, NON- PERFORMING FINANCING AND PROFITABILITY

Purpose of the study: This research aims to identify the influence of good corporate governance (GCG) mechanisms and human capital investment (HCI) on non-performing financing (NPF) and profitability. In addition, we examine the relationship between NPF and profitability. Methodology: The research samples are commercial Islamic banks in Indonesia (13 banks) that were determined by using a purposive sampling method. The data are collected from the banks’ financial statements and GCG reports, from 2012 to 2016. Structural Equation Modeling (SEM) was employed to analyze the data. Main Findings: Our study shows that the number of directors a bank has significantly affected NPF but does not affect profitability, while the size of the independent Board of Commissioners (BoC) has a significant influence on NPF and profitability. Sharia Supervisory Board also has a role in improving profitability. HCI has a significant effect on profitability, but it does not affect NPF. Applications of this study: Islamic banks are urged to improve their implementation of GCG, especially for their ratio of independent commissioners and HCI expenditure. Independent commissioners and HCI are able to reduce the level of NPF and improve performance. HCI expenditure should be viewed as an investment by the bank, and not as a cost. Investment in HCI is proven to improve profitability. Novelty/Originality of this study: The use by researchers of the HCI variable to influence NPC is still limited. The reason is that the main source of a bank’s income is from financing (loans), so the highest risk for the bank is NPF. To reduce NPF, the bank’s employees must have the ability to manage risk

Religiosity and misuse of school aid funds: The development of the fraud theory

Fraud is a problem that occurs in various organizations, including educational institutions. This condition is very ironic, educational institutions as institutions are required to teach anti-fraud education, but in fact, the educational institutions themselves are still fraudulent. This study aimed to explain the factors that can influence the principal, treasurer, and school committee to abuse school aid funds. The research sample was 145 principals, treasurers, and school committees for the elementary, junior high, and senior high school levels selected by convenience sampling method. All variables were measured using five Likert scales and analyzed with the multiple regression method. Instrument validity test using Pearson product-moment. This study shows that we found that pressure, internal control, integrity, and religiosity influence fraud. High financial pressures stemming from greed, a luxurious lifestyle, debt, integrity, low systems of control, and religiosity can increase fraud. These results reinforce the importance of schools or education-related regulatory agencies to be able to take policies to form a school environment that encourages honesty, limits teachers to hedonism, has a fair compensation system, and encourages teachers to practice worship, which needs to be done to avoid financial fraud from abuse of school aid funds

Website and Social Media Usage for Internet Reporting (Case Study at Zakah Managament Organization)

Zakah Management Organization (ZMO) is demanded to improve its transparency and accountability including presenting financial and non-financial information by internet. This study aims to describe and compare the usage of website and social media to report many kinds of information by ZMO at state university in Indonesia. This is descriptive qualitative study. The research object is website and social media of Rumah Amal Salman, Rumah Amal Lazis UNNES and LAZIS UNS. Moreover, the data is collected by observation and documentation method. In addition, the data then analyzed by content analysis. Results show that those ZMO have utilized well both website and social media for internet reporting, especially non-financial information. Website is used to deliver organization profile, product information and other important information that can be useful for donor or muzakki. However, there are two ZMO that have not used website and social media to report their financial state. It is Rumah Amal Lazis UNNES which conducts internet financial reporting but limited to Fund Statement. Furthermore, Facebook and Instagram are considered as social media that mostly used by ZMO. Twitter has not been actively used. In addition, YouTube application has not been maximized. In summary, interaction to muzakki through social media needs to be improved by the ZMO. Keywords: internet reporting, website, social media, facebook, instagram, twitter, ZM