PROFIT LOSS SHARING AS MEDIATOR OF MARKETABILITY AND PROFITABILITY IN SHARIA BANKING: EVIDENCE FROM SHARIA BANKS IN INDONESIA

Prajawati, Maretha Ika ORCID: https://orcid.org/0000-0002-3084-4031, Ningtyas, Mega Noerman ORCID: https://orcid.org/0000-0002-9509-3419, Setiani, Setiani ORCID: https://orcid.org/0000-0002-7566-7358, Vania, Amelindha ORCID: https://orcid.org/0000-0001-5742-4304 and Mahmudah, Anik (2025) PROFIT LOSS SHARING AS MEDIATOR OF MARKETABILITY AND PROFITABILITY IN SHARIA BANKING: EVIDENCE FROM SHARIA BANKS IN INDONESIA. Presented at I-iecons USIM Malaysia.

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Abstract

Banks that can do the differentiation can have a larger market share and concentration, so that they can run their business efficiently and generate more profit. The indirect impact of profit sharing on the relationship between marketability (market concentration and market share) will be examined in this study. This study also provides a
universal contribution to the Islamic finance literature regarding Structure-Conduct- Performance (SCP), which can be an insight for Islamic banks practitioners to increase profitability in their company. The population of this study is Islamic commercial banks listed
on the Indonesia Stock Exchange with a research period of 2019-2023. There are 13 banks listed. The research sample was taken using purposive sampling. The criteria used are: 1) The
banks must be consistently listed and provide complete financial statements for the period 2019-2019, and 2) Islamic commercial banks that offer mudharabah and musyarakah
financing. Based on these criteria, 5 banks were eliminated. The results of the study indicate that marketability, namely market concentration, does not have a significant effect on
increasing profitability. Although the percentage of market concentration for Islamic commercial banks increases, this fact has no effect on the ROA ratio. However, market share
is proven to have a significant effect on increasing profitability. This shows that if the percentage of market share increases, it will increase the ROA ratio. For the mediation effect,
profit loss sharing consisting of mudharabah and musyarakah is proven not to be able to affect the profitability of Islamic banks.

Item Type:	Conference (Paper)
Keywords:	marketability, profit loss sharing, profitability, sharia bank, indonesia
Subjects:	15 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 1502 Banking, Finance and Investment > 150299 Banking, Finance and Investment not elsewhere classified
Divisions:	Faculty of Economics > Department of Management
Depositing User:	Setiani Setiani
Date Deposited:	28 Jan 2026 14:17

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