The Effects of Earning Management and Financial Performance on the Quality of Islamic Banking Social Responsibility Report

DOI

10.2991/icied-17.2018.15How to use a DOI?

Keywords

Islamic Bank; Earnings management; Financial performance; Islamic Social Responsibility Report

Abstract

This research aims to show empirical evidence on the association of earning management and financial performance on the Islamic social responsibility of Islamic banks in Indonesia. Firstly, This research examines the indications of the practice of earning management in Islamic banks which is discouraged in Islamic principles. In turn, this research examines the effects of earning management, capital adequacy ratio (CAR), non performing financing (NPF), return on assets (ROA), and financial to deposit ratio (FDR) on the Islamic social responsibility. The study uses discretionary loan loss provision as a proxy of earning management and Islamic Social Reporting index to measure the Islamic Social Responsibility activities. The result shows that there is indications of earnings management practice in Islamic banks in Indonesia. In addition, this study shows that earnings management, CAR, ROA, and FDR do not affect the quality of social responsibility report, while NPF and firm size positively affect the quality of social responsibility report. This research is expected to contribute in Islamic economics and finance literature as well as the regulation recommendation

Copyright

© 2018, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Dina Andyani Pertiwi
AU  - Evony Silvino Violita
PY  - 2017/12
DA  - 2017/12
TI  - The Effects of Earning Management and Financial Performance on the Quality of Islamic Banking Social Responsibility Report
BT  - Proceedings of the 2nd International Conference on Indonesian Economy and Development (ICIED 2017)
PB  - Atlantis Press
SP  - 76
EP  - 79
SN  - 2352-5398
UR  - https://doi.org/10.2991/icied-17.2018.15
DO  - 10.2991/icied-17.2018.15
ID  - AndyaniPertiwi2017/12
ER  -