ASIAN JOURNAL OF ISLAMIC MANAGEMENT (AJIM)
VOLUME 2 ISSUE 1, 2020

Effect of Islamic corporate governance on customer trust: empirical study on Islamic bank

Agung Budi Sulistiyo (Faculty of Economics and Business, University of Jember, Jember, Indonesia)
Siti Maria Wardayati (Faculty of Economics and Business, University of Jember, Jember, Indonesia)
Arif Hidayatullah (Faculty of Economics and Business, University of Jember, Jember, Indonesia)
Shita Silvia Nahdia Riesky (Faculty of Economics and Business, University of Jember, Jember, Indonesia)



Article Info

Publish Date
11 Sep 2020

Abstract

Purpose: This study aims to analyze the effect of Islamic corporate governance and shariah compliance on customer trust in Islamic bank.Methodology: The research method used is a quantitative method with random sampling technique. The data analysis technique used is descriptive statistics and multiple linear regression techniques to test the hypothesis.Findings: The results of the study show that (1) out of the five principles of GCG (transparency, accountability, responsibility, independency and fairness) only transparency has a positive effect on customer trust as indicated by a significance value of 0.047. (2) shariah compliance has a positive effect on customer trust, besides that shariah compliance is a very large indicator contributing to increase customer trust, indicated by a significance value of 0,000.Originality: As far as we are concerned, only a few publications examined the effect of Islamic corporate governance and shariah compliance on customer trust in Islamic bank.

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Journal Info

Abbrev

AJIM

Publisher

Subject

Decision Sciences, Operations Research & Management Social Sciences Other

Description

The Asian Journal of Islamic Management (AJIM) is a peer-review journal publishes quality and in-depth analysis on current issues within Asia and Islamic management topics. The journal publishes twice a year every June and December. AJIM welcomes strong and original evidence-based empirical studies ...