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The Influence of Sustainability Report on Islamic Banking Performance in Indonesia

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Complex, Intelligent and Software Intensive Systems (CISIS 2021)

Part of the book series: Lecture Notes in Networks and Systems ((LNNS,volume 278))

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Abstract

The sustainability report is a strategic innovation made by companies to maintain public legitimacy. High banking performance reflects the success of management in sustainably fulfilling its financial management responsibilities. This research is one of the early studies that examine the uniqueness of Islamic banking in improving financial performance through innovative sustainability reports based on the GRI Index. The research was conducted using a sample of 12 Islamic banks in Indonesia in the 2017–2019 observation period by involving size as a demographic variable. The results of hypothesis testing indicate that the sustainability report has a positive impact on improving banking performance. Other results show that the larger the size, the broader the scope of the sustainability report. However, size is proven not to affect banking performance. The results of this hypothesis test indicate that the sustainability report is a purely intervening variable for the relationship between size and bank performance.

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Author information

Authors and Affiliations

  1. Universitas Islam Sultan Agung (UNISSULA), Semarang, Indonesia

    Muhammad Jafar Shodiq

Authors
  1. Muhammad Jafar Shodiq
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Correspondence to Muhammad Jafar Shodiq .

Editor information

Editors and Affiliations

  1. Department of Information and Communication Engineering, Fukuoka Institute of Technology, Fukuoka, Japan

    Leonard Barolli

  2. Department of Information Security Engineering, Soonchunhyang University, Asan, Korea (Republic of)

    Kangbin Yim

  3. Faculty of Bussiness Administration, Rissho University, Tokyo, Japan

    Tomoya Enokido

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Shodiq, M.J. (2021). The Influence of Sustainability Report on Islamic Banking Performance in Indonesia. In: Barolli, L., Yim, K., Enokido, T. (eds) Complex, Intelligent and Software Intensive Systems. CISIS 2021. Lecture Notes in Networks and Systems, vol 278. Springer, Cham. https://doi.org/10.1007/978-3-030-79725-6_59

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