Do Contributions of Islamic Banks Stakeholders Influence Profit and Loss Sharing Financing? : Empirical Evidence in Indonesia

Abstract

The purpose of this study is to examine the influence of contribution of shari’ah bank stakeholders on profit and loss sharing financing, in the case of Indonesia. Stakeholders contributions consisted of Investors, Depositors, Management,  and  shari’ah supervisory board.  9 Islamic commercial banks and 16 Islamic business units were selected using purposive sampling method. Data obtained from annual reports from 2011 to 2016. The results of the study with multiple regression models show that stakeholder contributions, such as mudharabah depositors and management have a positive influence on profit and loss sharing financing. Other stakeholder contributions proved to have no significant effect on profit and loss sharing financing.