Does financial performance mediate the effect of good corporate governance on indonesian ṣukūk rating?

Sulistiani, Dwi ORCID: https://orcid.org/0000-0002-7921-1913 and Tjahjadi, Bambang (2022) Does financial performance mediate the effect of good corporate governance on indonesian ṣukūk rating? Journal of King Abdulaziz University: Islamic Economics, 35 (2). pp. 97-114. ISSN 1018-7383

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Abstract

Ṣukūk is one of the products of Islamic financial institutions IFIS), so the rating of such instruments should be considered. This study aims to provide empirical evidence of the influence of Good Corporate Governance on Ṣukūk rating, with financial performance as a mediating variable. Multiple regression, ordinal logistic regression and Sobel test were used to test the Assumptions on 222 Ṣukūk, which were listed on the Indonesia Stock Exchange as of December 31st, 2020. The results show that the supervisory board's size, independence, experience, and the audit committee's size and experience directly affect the Ṣukūk rating. Financial performance has also been shown to have a direct influence on Ṣukūk rating, which in turn can mediate the effect of the three elements of the Good Corporate Governance supervisory function on Ṣukūk rating, namely: the size of supervisory boards, the independence and the number of Sharīʿah supervisory boards. It is therefore important for companies to pay due attention to the Good Corporate Governance, especially with regard to the supervisory function and financial performance to support Ṣukūk rating. This study confirms that the existence of a Sharīʿah supervisory board can support the achievement of financial performance and Ṣukūk rating in IFIs.

Item Type:	Journal Article
Keywords:	ṣukūk; good corporate governance; financial performance; ṣukūk rating; Indonesia stock exchange
Subjects:	15 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 1501 Accounting, Auditing and Accountability > 150103 Financial Accounting 15 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 1501 Accounting, Auditing and Accountability > 150113 Stock Exchange 15 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 1503 Business and Management > 150303 Corporate Governance and Stakeholder Engagement 15 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 1503 Business and Management
Divisions:	Faculty of Tarbiyah and Teaching Training > Department of Social Science Education
Depositing User:	MSA,Ak,CA Dwi Sulistiani
Date Deposited:	15 May 2023 10:22

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