Commercial and social activities of Indonesian Islamic banks: do they relate?

Q3 Business, Management and Accounting

International Journal of Management and Enterprise Development Pub Date : 2022-09-18 DOI:10.20414/jed.v4i2.5584

Budi Sukardi, Muhammad Alan Nur, Fachrurazi Fachrurazi, Fuad Dhiya Ul Husaen, Eko Asmanto

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Abstract

Purpose — This study investigates the relationship between commercial and social activities in Indonesian Islamic banks.Method — This study employed a Panel Vector Error Correction Model (PVAR) model with Impulse Response Function (I.R.F), Variance Decomposition (V.D.C), and Granger Causality. Observations were conducted from 2010 to 2020 on eight Islamic banks in Indonesia, representing 72.72 percent of the total Islamic banking population in Indonesia. The collecting of data pertains to the yearly financial report. Social activities are based on the amount of zakat fund distribution (ZKT) and benevolence fund distribution (DKB). Commercial activities are based on Islamic banking financial ratios that are proxied by Return on Assets (ROA), Financing to Deposit Ratio (FDR), and Non-Performing Financing (NPF).Result — The results showed that social activities in Indonesian Islamic banks are influenced by their commercial activities, but it does not apply vice versa. In other words, there is a one-way relationship between commercial and social activities in Indonesian Islamic banks.Contribution — This study contributes by studying the relationship between commercial and social activities by using the PVAR model with the analysis of Impulse Response Function (I.R.F), Variance Decomposition (V.D.C), and Granger Causality which so far have not been explored.

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印尼伊斯兰银行的商业和社会活动:它们有关联吗?

目的:本研究探讨印尼伊斯兰银行商业活动与社会活动之间的关系。方法:本研究采用具有脉冲响应函数(irf)、方差分解(V.D.C)和格兰杰因果关系的面板向量误差修正模型(PVAR)模型。从2010年到2020年，对印度尼西亚的8家伊斯兰银行进行了观察，这些银行占印度尼西亚伊斯兰银行总人数的72.72%。数据的收集与年度财务报告有关。社会活动以天课基金分配(ZKT)和慈善基金分配(DKB)的金额为基础。商业活动基于伊斯兰银行的金融比率，由资产回报率(ROA)、融资与存款比率(FDR)和不良融资(NPF)代表。结果-结果表明，印度尼西亚伊斯兰银行的社会活动受到其商业活动的影响，但反之则不适用。换句话说，印尼伊斯兰银行的商业活动和社会活动之间存在单向关系。贡献——本研究的贡献在于利用PVAR模型，结合脉冲响应函数(irf)、方差分解(V.D.C)和格兰杰因果关系的分析，研究了商业活动与社会活动之间的关系，这是迄今为止尚未探索的。

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

International Journal of Management and Enterprise Development Business, Management and Accounting-Business and International Management

CiteScore

1.80

自引率

0.00%

发文量

期刊介绍： IJMED is a major international research journal dedicated to business development strategy and entrepreneurship policy as well as management processes in an international and cross-cultural context. IJMED provides a venue for high quality papers including theoretical research articles, evidence-based case studies and practical applications seeking to explore best practice and investigate strategies for rapid growth management in SMEs. IJMED has a history of contributing to the academic literature, providing conceptual and practical insights and generating innovative ideas for organizational enterprise. Topics covered include: -SMEs'' start-up development, corporate venturing- Technological opportunities, new firm creation, valuation- Technological adoption, technology transfer, technopreneurship- Joint ventures/alliances, franchising and corporate ownership- Business incubator development strategy- Economic and social entrepreneurship- Virtual coaching services for SMEs- SMEs and entrepreneurship policy- Start-up cognitions/behaviours- Halo effect, technology licensing- Long-run technology investments- Knowledge management/technology strategy in SMEs- Managing rapid growth, accelerating competitive effectiveness- Strategy decision speed and SME performance- Entrepreneurs in non-profit sector.