SRIWIJAYA INTERNATIONAL JOURNAL OF DYNAMIC ECONOMICS AND BUSINESS
SIJDEB, Vol. 7, No. 2, June 2023

Determinants of Firm Value: A Study on Islamic Banking in Indonesia

Mochammad Ridwan ((SCOPUS ID: 57201152854) Universitas Pasundan)
Erik Syawal Alghifari (Universitas Pasundan)
Winwin Yadiati (Universitas Padjadjaran)
Karisma Azahra Hidayah (Universitas Pasundan)



Article Info

Publish Date
14 Oct 2023

Abstract

This study attempts to measure the effect of Islamic corporate governance and Islamic social responsibility on firm value and to analyse the moderation role of profitability. Data from 12 Islamic commercial banks registered in Indonesia was taken from 2017 to 2021 and analysed using a panel data regression approach with the generalized least squares approach and model robustness testing using the robust least squares analysis method. Strong Islamic corporate governance highlights the benefits of ethical governance and increases the value of sharia-compliant banks. The long-term character of corporate social responsibility is demonstrated by the fact that some Islamic social responsibility activities do not necessarily have a positive influence on the firm value banking sector in Indonesia. High profitability strengthens Islamic corporate governance and has a beneficial impact on firm value, emphasising the interdependence between governance and financial performance. High profitability may reduce the beneficial impact of Islamic social responsibility on firm value, perhaps due to the perception of corporate social responsibility initiatives as being motivated by profit.

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Journal Info

Abbrev

SIJDEB

Publisher

Subject

Economics, Econometrics & Finance

Description

The SIJDEB invites manuscripts in the various topics include, but not limited to functional areas of Financial Management, Marketing Management, Human Resource Management, Entrepreneurship, Strategic Management, Public Economics, Monetary Economics, Industrial Economics, Human Resource Economics, ...