IT investment and Islamic banking performance in Indonesia: Do Sukuk issuance and Sariah governance matter?

Q1 Social Sciences

Banks and Bank Systems Pub Date : 2023-05-22 DOI:10.21511/bbs.18(2).2023.07

J. Effendi, Abdul Qoyum, Leo Indra Wardhana, Hassanudin Mohd Thas Thaker

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引用次数: 1

Abstract

IT investment and financial performance are crucial issues for the Islamic banking industry. An Islamic banking (IB) that is established in a technologically advanced setting, employs mostly young and tech-savvy employees, and adheres to Islamic principles in all aspects of its activities, needs to invest in IT. This investment in information technology is essential if they are to remain competitive and achieve solid financial performance. This study aims to investigate the effect of IT investment on Islamic banking performance in Indonesia. The study used data of 14 Islamic banks in Indonesia, from 2012 to 2021. By employing panel regression analysis, the study revealed that IT investment has a significant impact on Islamic banking performance, indicated by ATM and Expenses for Human Resources (BG), which has the coefficient 1.75e-07 (Alpha 0.060) and 4.73e-14 (Alpha 1%), respectively. The study also documented a significant relationship between IT investment and IB performance, caused by Sukuk issuance and the Shariah supervisory board. Sukuk issuance has a negative impact on banking performance in relation to IT investment, while shariah governance (board of directors and shariah supervisory board) has a positive impact. Hence, it is also important for an Islamic banking to minimize the use of Sukuk, which until now was still categorized as debt, and to maximize the role of good governance to back up IT spending.

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印尼的IT投资和伊斯兰银行业表现：Sukuk发行和Sariah治理重要吗？

IT投资和财务业绩是伊斯兰银行业的关键问题。一家在技术先进的环境中成立的伊斯兰银行（IB），主要雇佣年轻且精通技术的员工，并在其活动的各个方面遵守伊斯兰原则，需要对IT进行投资。如果他们要保持竞争力并实现稳健的财务业绩，对信息技术的投资至关重要。本研究旨在调查IT投资对印尼伊斯兰银行业绩的影响。该研究使用了印度尼西亚14家伊斯兰银行2012年至2021年的数据。通过采用面板回归分析，该研究表明，IT投资对伊斯兰银行业绩有显著影响，ATM和人力资源支出（BG）分别为1.75e-07（阿尔法0.060）和4.73e-14（阿尔法1%）。该研究还记录了由Sukuk发行和Shariah监事会引起的IT投资与IB业绩之间的重要关系。Sukuk的发行对IT投资方面的银行业绩产生了负面影响，而伊斯兰教法治理（董事会和伊斯兰教法监督委员会）则产生了积极影响。因此，对于伊斯兰银行来说，最大限度地减少使用Sukuk也很重要，直到现在，Sukuk仍被归类为债务，并最大限度地发挥良好治理的作用来支持it支出。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Banks and Bank Systems Social Sciences-Law

CiteScore

2.60

自引率

0.00%

发文量

审稿时长

11 weeks

期刊介绍： The journal focuses on the results of scientific researches on monetary policy issues in different countries and regions all over the world. It also analyzes the activities of international financial organizations, central banks, and bank institutions. Key topics: -Monetary Policy in Different Countries and Regions; -Monetary and Payment Systems; -International Financial Organizations and Institutions; -Monetary Policy of Central Banks; -Organizational Structure, Functions and Activities of Central Banks; -State Policy and Regulation of Banking; -Bank Competitiveness; -Banks at the Financial Markets; -Bank Associations and Conglomerates; -International Payment Systems; -Investment Banking; -Financial Risks and Risk Management in Banks; -Capital and Ownership Structure, Bankruptcy and Liquidation, Mergers and Acquisitions of Banks; -Corporate Governance and Goodwill; -Personnel Management in Banks; -Econometric, Statistical Methods; Econometric Modeling of Bank Activities; -Bank Ratings.