The Indonesian Experience in Sharia Bank’s Financial Performance Based on Index of Islamic Social Reporting and Sharia Supervisory Board

Abstract

. Corporate Social Responsibility (CSR) disclosure in conventional banks is more excellent than in Islamic banks. The higher the CSR disclosure component reflected in the Index of Islamic Social Reporting (IISR), the more the company cares about the surroundings. This study examines IISR on financial performance. Not only that, but this study also uses the number of meetings (NB) and educational background (EB) as proxies for the sharia supervisory board (SSB) because testing this variable is still limited. This study used content analysis of annual reports of 10 sharia banks in Indonesia. Panel data regression was used for the period 2014-2018. The results showed that the IISR and EB variables did not influence to ROA. Meanwhile, the variable number of meetings has a negative effect on the amount of ROA.