Title:
THE EFFECT OF GOOD CORPORATE GOVERNANCE AND CORPORATE SOCIAL RESPONSIBILITY ON FINANCIAL PERFORMANCE OF SHARIA BANK

Authors:
Aryan Dhana, Iramani, Indonesia

Abstract:

This study aims to analyze the influence of Good Corporate Governance, Corporate Social Responsibility on Financial Performance. This type of research is included in the causal research type using quantitative approach design. The population used in this study is sharia commercial banks registered at the Financial Services Authority (OJK) for the period 2014-2018. In the determination of samples used purposive sampling techniques. The analysis technique chosen to analyze the data and test the hypothesis in this study is the structural equation model (SEM) using Partial Least Square (PLS). In the determination of samples, used purposive sampling technique, where the criteria used are banks that are sharia commercial banks registered at the OJK in the period 2014-2019, publishing annual reports in the period 2014-2019, and annual reports that have been audited. The analysis technique chosen to analyze the data and test the hypothesis in this study is the structural equation model (SEM) using Partial Least Square (PLS). This study shows that: (1) Good Corporate Governance has a positive and significant effect on Financial Performance; (2) Corporate Social Responsibility negatively but insignificantly affects Financial Performance. This research is expected to contribute knowledge about the influence of corporate social responsibility and good corporate governance on financial performance. The strength of this study can measure matters related to Sharia banking, especially for variable good corporate governance, corporate social responsibility, and financial performance, while the weakness of the research is a sample for banking that is measured still need to be added in the following study.