BOARD CHARACTERISTICS, GOOD Economics and Finance CORPORATE - - PowerPoint PPT Presentation

The 5th International Islamic Monetary Economics and Finance

Muhammad Wahyudi Pranata, S. Akun

• Dr. Sugiyarti Fatma Laela, M.Buss(Acc)

BOARD CHARACTERISTICS, GOOD CORPORATE GOVERNANCE, MAQASHID PERFORMANCE IN ISLAMIC BANKING

IIMEFC | 12-13 November | Jakarta

The 5th International Islamic Monetary Economics and Finance

3

Agency theory is the main foundation for the emergence

• f corporate governance

practices

AGENCY THEORY

Each board has a role in accordance with the functions, duties and responsibilities in the implementation of GCG

ROLE OF BOARD

Maintain the objectives of the shari'ah

MAQASHID PERFORMANCE

Sharia banks in their management must refer to governance standards and guidelines that are in accordance with sharia principles to achieve maqâshid shari’ah

GOOD CORPORATE GOVERNANCE

The 5th International Islamic Monetary Economics and Finance

LITERATURE REVIEW

Associative research Quantitative research with panel data regression Applied research.

Type of Research

Annual Report from the bank’s offjcial website. Observation of the annual fjnancial report documentation and GCG reports that have been offjcially published.

Data Collections Method Sample Selection

12 BUS registered with OJK. Research period is 2009-2017

01

02 03

The 5th International Islamic Monetary Economics and Finance

RESEARCH METHOD

R E S U LT

• BOARD OWNERSHIP
• Internal Ownership of BOC and BOD do not afgect

the performance of maqashid shariah

• BOARD EXPERTISE
• SSB and BOC Expertise do not afgect the

performance of maqashid shariah

• BOARD INDEPENDENCE
• BOC Independence does not afgect the

performance of maqashid shariah

• BOARD CROSS-

MEMBERSHIP

• SSB and BOC Cross-membership does not afgect

the performance of maqashid shariah

• BOARD TENURE
• BOC and BOD T

enure does not afgect the performance of maqashid shariah

• With Control Variable

R E S U LT

• BOARD OWNERSHIP
• Internal Ownership of BOC and BOD do not afgect

the performance of maqashid shariah

• BOARD EXPERTISE
• BOC Expertise afgect the performance of

maqashid shariaih and SSB does not afgect the performance of maqashid shariah

• BOARD INDEPENDENCE
• BOC Independence has a negative relationship to

the perfomance maqashid shariah

• BOARD CROSS-

MEMBERSHIP

• SSB and BOC Cross-membership does not afgect

the performance of maqashid shariah

• BOARD TENURE
• BOD T

enure has a positive relationship and BOC T enure has a negative relationship to the performance of maqashid shariah

• Without Control Variable

CLOSING

• Difgerence result using and

withour control variable is an indication of a strong infmuence

• f size and growth as a control

variable that afgects the performance of maqashid shariah.

• Financial fundamental factors are

stronger than governance factors

• n Islamic bank performance

CONCLUSION

• A mechanistic management

control system should be emphasized that is tight, direct, formal and impersonal for regulator.

• Increase Islamic Accounting

expertise by following SAS certifjcation for practitioner.

SUGGESTIONS The 5th International Islamic Monetary Economics and Finance

THANK YOU

The 5th International Islamic Monetary Economics and Finance

IIMEFC | 12-13 November | Jakarta