al-Uqud : Journal of Islamic Economics
Vol. 5 No. 2 (2021): July

The Impact of Internet-Based Corporate Governance Sharia (IBCGS) Rating on Shareholders Trust in Jakarta Islamic Index Companies

Ulil Hartono (Department of Management Faculty of Economics Universitas Negeri Surabaya)
Musdholifah Musdholifah (Department of Management Faculty of Economics Universitas Negeri Surabaya)
Ika Diyah Candra Arifah (Department of Management Faculty of Economics Universitas Negeri Surabaya)
Riska Dhenabayu (Department of Management Faculty of Economics Universitas Negeri Surabaya)
Trias Madanika Kusumaningrum (Department of Management Faculty of Economics Universitas Negeri Surabaya)



Article Info

Publish Date
30 Jul 2021

Abstract

The purpose of this research is to present the quality measurement of internet-based Islamic corporate governance and identify its effects on stakeholder trust. In measuring the implementation of corporate governance, this study uses the method of measuring the quality of Islamic corporate governance (IBCGS), as the development of IBCG and IBCG Rating Modified. This research uses descriptive exploratory analysis tools with PLS-SEM as the statistical tool. The object of this research is a company registered in the Jakarta Islamic Index (JII). The results showed that the implementation of corporate governance based on IBCGS by sample companies had been implemented but with varying quality. Meanwhile, the implementation of corporate governance in sharia companies positively influences shareholder trust manifested by their return on equity, stock returns and earnings per share. The findings of this study are expected to contribute to the signalling theory and agency theory in explaining the influence of the quality of corporate governance on the shareholder trust that should be concerned by sharia companies.

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Journal Info

Abbrev

jie

Publisher

Subject

Economics, Econometrics & Finance

Description

al-Uqûd : Journal of Islamic Economics published by the Islamic Economic Studies Department of Economics Faculty of Economics, Universitas Negeri Surabaya in cooperation with the Forum of Economic and Business Lecturer Islam (FORDEBI). al-Uqûd published twice a year, in January and July. The ...