This research empirically tested the factors of fraud occurrence in sharia banks based on fraud triangle theory, which is motivation, opportunity and rationalization must be fulfilled for the occurrence of fraud. This research develops indicators as a proxy of motivation, opportunity and rationalization. Factors tested in this research is the Islamic Corporate Governance to fraud with the Islamicity Financial Performance Index as a mediator in sharia banks 2012-2016.This research using quantitative method with secondary data. Data are obtained from annual reports published by Islamic banks. The test is done by path analysis and processed using SPSS. The result of research shows that Islamic Corporate Governance has no effect to Islamicity Performance Index, Islamic Income Ratio, Profit Sharing Ratio and Islamic Investment Ratio (Islamicity Financial Performance Index) influence to Fraud, Islamic Corporate Governance has no effect to Fraud, and Islamic Income Ratio, Profit Sharing Ratio and Islamic Investment Ratio (Islamicity Financial Performance Index) does not mediate the influence of Islamic Corporate Governance to Fraud on Islamic Bank or it can be said that there is no mediation. This research shows that factors based on fraud triangle are effective for use in explaining fraud.

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Islamic Corporate Governance, Islamicityfinancial Performance Index And Fraudat Islamic Bank

This study seeks to supply empirical evidence for how board characteristics influence corporate governance compliance in the Indonesian banking industry. Corporate governance compliance level represents a company’s actions to fulfill regulatory obligations that aim to protect the public from potential investment losses in the banking industry. This research was conducted by analyzing the influence of board characteristics, specifically how a board of commissioners’ institutions and their instruments affect corporate governance compliance. The entire banking industry, which was listed on the Indonesia Stock Exchange from 2010 to 2015, was employed as the population for this research. Purposive sampling was used as the sampling technique, resulting in 195 observations. To test this study’s hypotheses, multiple regression was applied as the data analysis method. The results revealed that the size of the board of commissioners, the proportion of independent commissioners, the experience of commissioners, and the size of the audit committee were factors that encouraged management in the banking industry to improve their firms’ corporate governance compliance. This indicates that monitoring from the board acts as an effective mechanism for reducing information asymmetry. This research also proves that open innovation following regulations can increase compliance with laws.

Corporate Governance Compliance in Banking Industry: The Role of the Board

--This paper evaluates the principles, relevance, and usefulness of Islamic banking law in implementing Islamic banks' administrative systems. Islamic sharia law has become a source of law in several Islamic countries. Sharia law comes from the Islamic religion, which must be applied in many sectors, including the banking system. The goal is to improve kaffah Islamic teachings in aspects of life by adhering to the Koran, a concept to be applied to many systems. Although this banking system has become a fundamental law, studies are still needed to determine the relevance, principles, and application of Islamic banking law with application in the field to see the advantages and disadvantages. An in-depth data analysis process was carried out, which included data coding, critical interpretation, and evaluation that matched the findings with the discussion topic and determined the findings' validity and reliability. Based on the literature, the findings of this study confirm that Islamic banking law has been applied correctly in the context of administrative services in the field because of the effectiveness and vision of the ummah in the context of concepts, principles, and field application; assisting public financial services in Islamic countries. Keywords---bank administration, islamic banking, journal publication, sharia principle.

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Relevance on islamic principle law with application at the field: review of islamic banking publication in Indonesia

This study aims to examine the effect of corporate governance on financial performance of Islamic banking in Indonesia. Corporate governance mechanism determined by board of director, independent commissioner, and sharia supervisory board, meanwhile the financial performance is calculated by using Return on Assets (ROA) and Economic Value Added (EVA). The data were collected from each bank’s annual report in a period 2014-2018, thus 9 Islamic Banks were taken by purposive sampling. The analysis method is path analysis and applied by WarpPLS 6.0 tool. This study reveals that board of director had significant influence to ROA, however independent commissioner and sharia supervisory board had no significant influence to ROA, on the other hand only independent commissioner and ROA had significant influence to EVA. The findings can be a consideration for banking management to control financial performance, by improving good corporate governance therefore the financial performance will increase.

The Effect of Corporate Governance on Financial Performance: Evidence from Islamic Banks in Indonesia

This study aims to find out, analyze and discover the nature of sharia compliance in Sharia banking business activities. This type of research is empirical normative with non-doctrinal or sociological approaches. Researchers used qualitative analysis of the results of the questionnaire and interviews as well as primary, secondary and tertiary legal materials. The results showed that; The essence of Shariah Compliance in Sharia Banking is for the purpose of benefit, prosperity and happiness, blessing, and worship to reach falah (glory). Research suggestions are the need for more intensive socialization, education and awareness process to the public / customers in order to understand the existence and function of sharia banking, 2) The need for aspects of sharia compliance for sharia banking to be a basic value, principles and guidelines, both stakeholders, officials, employees / employee, Sharia Supervisory Board.

https://bircu-journal.com/index.php/birci/article/download/1191/pdf

Shari’ah Compliance Rights in Implementation of Legal Principles on Shari’ah Banking

Basically, good corporate governance is the implementation of the vision and mission of Islamic banking. The main point is the reference of this visionis to fulfil the principle of prudence (prudential banking). Meanwhile, point mission is to prepare and implement the concept of risk-based regulation and supervision to ensure the sustainability of Islamic banking operations in accordance with the characteristics that Islamic corporate governance meant that economic activity actually undertake into achieve its goal, both goals hablumminallah and hablumminannas. This is reasonable, because Islamic Corporate Governance has become the soul of all parties involved in the company (stakeholders), the fraud, speculation, insider-trading, or else can be minimized. Keywords: GCG, sharia banking, conventional banking.

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Aldira Maradita

Papers

Karakteristik good corporate governance pada bank syariah dan bank konvensional