The Role of Good Governance on Maqoshid Index Performance: The Case of Islamic Bank in Indonesia

Irman Firmansyah, Nisa Noor Wahid, Adil Ridlo Fadillah, Dedi Kusmayadi

2018

Abstract

This study aims to analyse the performance of each Islamic bank through the maqoshid sharia index approach, which measures the performance in accordance with the Islamic banks operational purpose. In addition, the important factor in improving performance is the implementation of good governance so that it will be tested the influence of good corporate governance on maqoshid sharia performance. This research was conducted at Islamic banks in Indonesia in period of 2012 until 2016. The result of research shows that overall, the best performing bank of maqoshid sharia is Bank Panin Syariah. In addition, the results of the regression show that good corporate governance does not affect the performance of maqoshid sharia in Islamic banks in Indonesia. This research proves that good governance in Islamic bank has not been able to improve the performance of maqoshid sharia. The biggest possibility is that banks still prioritize earnings as a measure of performance.

Paper Citation

in Harvard Style

Firmansyah I., Wahid N., Fadillah A. and Kusmayadi D. (2018). The Role of Good Governance on Maqoshid Index Performance: The Case of Islamic Bank in Indonesia.In Proceedings of the 7th International Conference on Multidisciplinary Research - Volume 1: ICMR, ISBN 978-989-758-437-4, pages 374-382. DOI: 10.5220/0008885403740382

in Bibtex Style

@conference{icmr18,
author={Irman Firmansyah and Nisa Noor Wahid and Adil Ridlo Fadillah and Dedi Kusmayadi},
title={The Role of Good Governance on Maqoshid Index Performance: The Case of Islamic Bank in Indonesia},
booktitle={Proceedings of the 7th International Conference on Multidisciplinary Research - Volume 1: ICMR,},
year={2018},
pages={374-382},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0008885403740382},
isbn={978-989-758-437-4},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 7th International Conference on Multidisciplinary Research - Volume 1: ICMR,
TI - The Role of Good Governance on Maqoshid Index Performance: The Case of Islamic Bank in Indonesia
SN - 978-989-758-437-4
AU - Firmansyah I.
AU - Wahid N.
AU - Fadillah A.
AU - Kusmayadi D.
PY - 2018
SP - 374
EP - 382
DO - 10.5220/0008885403740382