Corporate governance and Islamic social reporting disclosure: evidence from Islamic bank in ASEAN

Anggita Renata Sari; Misnen Ardiansyah; Narong Hassanee

doi:10.21580/jiafr.2025.7.2.25891

Authors

Anggita Renata Sari Universitas Islam Negeri Sunan Kalijaga Yogyakarta, Indonesia
Misnen Ardiansyah Universitas Islam Negeri Sunan Kalijaga Yogyakarta, Indonesia
Narong Hassanee Fatoni University, Thailand

DOI:

https://doi.org/10.21580/jiafr.2025.7.2.25891

Keywords:

Islamic bank, Islamic social reporting, ASEAN

Abstract

Purpose - This study aims to analyze the effect of CEO power, independent board of commissioners, capital structure, and firm size on Islamic social reporting disclosure, as well as to explore the role of profitability as a moderating variable.

Method - Using the random effect model and data analysis with EViews 12, the research sample includes Islamic banks in Malaysia, Indonesia, and Brunei Darussalam during the period from 2018 to 2023, with a population of 20.

Result - CEO power has no significant effect on isr disclosure, while the independent board of commissioners and firm size have a significant positive effect. Capital structure shows a positive but insignificant effect, with profitability moderating the relationship between capital structure and firm size on isr disclosure.

Implication - Good corporate governance and management commitment are essential for enhancing ISR disclosure, which is key to maintaining the reputation and transparency of Islamic banks in ASEAN.

Originality - This study is the first to examine Islamic social reporting disclosure by integrating corporate governance factors and profitability across three ASEAN countries.

Downloads

Download data is not yet available.

References

Afendi, A., & Rasyidin, M. (2023). The Influence Of Company Size , Liquidity , Profitability , And Leverage On Islamic Social Report Disclosure. 5(2), 105–124. https://doi.org/10.21580/al-arbah.2023.5.2.18001

Al-Duais, S. D., Qasem, A., Wan-Hussin, W. N., Bamahros, H. M., Thomran, M., & Alquhaif, A. (2021). Ceo characteristics, family ownership and corporate social responsibility reporting: The case of Saudi Arabia. Sustainability (Switzerland), 13(21), 1–21. https://doi.org/10.3390/su132112237

Alazzani, A., Wan-Hussin, W. N., & Jones, M. (2019). Muslim CEO, women on boards and corporate responsibility reporting : some evidence from Malaysia . Journal of Islamic Accounting and Business. 10, 274–296.

Anggraeni, D. Y., Kartika, R., & Yuskar, Y. (2020). Muslim CEO and Islamic social reporting disclosure: Evidence from indonesia. Media Riset Akuntansi, Auditing & Informasi, 20(2), 169–184.

Astuti, W., & Nurkhin, A. (2019). The role of Islamic Governance on Islamic social reporting disclosure of Indonesia Islamic Banks. Proceeding of Conference on Islamic Management, Accounting, and Economics, 26–36.

Awa, H. O., Etim, W., & Ogbonda, E. (2024). Stakeholders, stakeholder theory and Corporate Social Responsibility (CSR). International Journal of Corporate Social Responsibility, 9(1), 11.

Baharuddin, M. I., Junaidi, & Sultan. (2023). Corporate Social Responsibility : An Empirical Study On Islamic Banks In Indonesia. 09(01), 19–35.

Bassyouny, H., Abdelfattah, T., & Tao, L. (2020). Beyond narrative disclosure tone: The upper echelons theory perspective. International Review of Financial Analysis, 70, 101499.

Bendickson, J., Muldoon, J., Liguori, E., & Davis, P. E. (2016). Agency theory: the times, they are a-changin’. Management Decision, 54(1), 174–193.

Cahya, B. T., Hanifah, U., Marpaung, M., & Lubis, I. S. (2019). The development of Islamic social reporting as a concept of social accountability based on Sharia. KnE Social Sciences, 97–110.

Cahya, B. T., Nuruddin, A., & Ikhsan, A. (2017). Islamic social reporting: from the perspectives of corporate governance strength, media exposure and the characteristics of sharia based companies in Indonesia and its impact on firm value. IOSR Journal of Humanities and Social Science, 22(5), 71–78.

Chen, W. T., Zhou, G. S., & Zhu, X. K. (2019). CEO tenure and corporate social responsibility performance. Journal of Business Research, 95, 292–302.

Chowdhury, M. A. M., & Haron, R. (2021). The efficiency of Islamic Banks in the Southeast Asia (SEA) region. Future Business Journal, 7, 1–16.

Hamid, A. M. (2024). Tata Kelola Keuangan Islam pada Sekolah Islam. Academia Publication.

Harper, J., & Sun, L. (2019). CEO power and corporate social responsibility. https://doi.org/10.1108/AJB-10-2018-0058

Haryono, H. (2022). Awareness to the Islamic Social Reporting ( ISR ) disclosure : a case study in companies listed in Jakarta Islamic Index ( JII ). 8(2), 348–358.

Hussain, A., Khan, M., Rehman, A., Sahib Zada, S., Malik, S., Khattak, A., & Khan, H. (2021). Determinants of Islamic social reporting in Islamic banks of Pakistan. International Journal of Law and Management, 63(1), 1–15. https://doi.org/10.1108/IJLMA-02-2020-0060

ICD Refinitiv. (2021). Islamic finance development report 2021: Advancing economies. Refinitiv: An LSEG Business, 78. https://www.refinitiv.com/content/dam/marketing/en_us/documents/gated/reports/report-2021-all-color2.pdf

Ifada, L. M., Suhendi, C., & Hanafi, R. (2021). The Role of Board of Commissioners in Islamic Social Reporting. Jurnal Economia, 17(2), 195–207. https://doi.org/10.21831/economia.v17i2.39682

IFSB. (2023). Islamic Financial Services Industry: Stability Report 2023. FRB Stability Report, May. https://www.bb.org.bd/pub/publictn.php

Jan, A., Mata, M. N., Albinsson, P. A., Martins, J. M., Hassan, R. B., & Mata, P. N. (2021). Alignment of islamic banking sustainability indicators with sustainable development goals: Policy recommendations for addressing the covid-19 pandemic. Sustainability, 13(5), 2607.

Jati, K. W., Agustina, L., Muliasari, I., & Armeliza, D. (2020). Islamic social reporting disclosure as a form of social responsibility of Islamic banks in Indonesia. Banks and Bank Systems, 15(2), 47–55.

Khan, M. A., & Muttakin, M. (2022). The Effect of Ownership Structure, Capital Structure, and Profitability on Islamic Social Reporting Disclosure: Evidence from Pakistan. Journal of Business Ethics, 177(2), 331–353.

Martínez, M. C. P., & Álvarez, I. G. (2019). An international approach of the relationship between board attributes and the disclosure of corporate social responsibility issues. Corporate Social Responsibility and Environmental Management, 26(3), 612–627.

Meckling, W. H., & Jensen, M. C. (1976). Theory of the Firm. Managerial Behavior, Agency Costs and Ownership Structure.

Meutia, I., Aryani, D., & Widyastuti, S. M. (2019). Characteristics of the sharia supervisory board and its relevance to Islamic social reporting at Islamic banks in Indonesia. EKUITAS (Jurnal Ekonomi Dan Keuangan), 3(1), 130–147.

Mubarok, S. M. (2020). The determinants of Islamic social reporting disclosure and its impact on the profitability of sharia banks. Journal of Islamic Economics Management and Business (JIEMB), 1(1), 63–98.

Mukhibad, H., & Fitri, A. (2020). Determinant of Islamic Social Reporting (ISR) Disclosure. KnE Social Sciences, 2020, 478–489. https://doi.org/10.18502/kss.v4i6.6620

Mustofa, M. S., Dianto, A. Y., & Udin, M. F. (2023). Model Manajemen Resiko pada Lembaga Keuangan Syariah. Indonesian Journal of Humanities and Social Sciences, 4(3), 725–740.

Neely Jr, B. H., Lovelace, J. B., Cowen, A. P., & Hiller, N. J. (2020). Metacritiques of upper echelons theory: Verdicts and recommendations for future research. Journal of Management, 46(6), 1029–1062.

Nekhili, M., Nagati, H., Chtioui, T., & Rebolledo, C. (2017). Corporate social responsibility disclosure and market value: Family versus nonfamily firms. Journal of Business Research, 77, 41–52.

Nofitasari, W. A., & Endraswati, H. (2019). Islamic Social Reporting ( ISR ) Analysis in Indonesia and Malaysia. Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah, 11(July), 341–356.

Oyewole, O. J., Al-Faryan, M. A. S., Adekoya, O. B., & Oliyide, J. A. (2024). Energy efficiency, financial inclusion, and socio-economic outcomes: Evidence across advanced, emerging, and developing countries. Energy, 289(3), 130062.

Rashid, A., Shams, S., Bose, S., & Khan, H. (2020). CEO power and corporate social responsibility (CSR) disclosure: does stakeholder influence matter? In Managerial Auditing Journal (Vol. 35, Issue 9). https://doi.org/10.1108/MAJ-11-2019-2463

Santoso, N. (2019). Determinants of Islamic Social Reporting Disclosure : The Case of Jakarta Determinants of Islamic Social Reporting Disclosure : The Case of Jakarta Islamic Index. August. https://doi.org/10.1007/978-981-10-6926-0

Sheikh, S. (2019). An examination of the dimensions of CEO power and corporate social responsibility. Review of Accounting and Finance, 18(2), 221–244.

Sirén, C., Patel, P. C., Örtqvist, D., & Wincent, J. (2018). CEO burnout, managerial discretion, and firm performance: The role of CEO locus of control, structural power, and organizational factors. Long Range Planning, 51(6), 953–971.

Susbiyani, A., Halim, M., & Animah, A. (2023a). Determinants of Islamic social reporting disclosure and its effect on firm’s value. Journal of Islamic Accounting and Business Research, 14(3), 416–435.

Susbiyani, A., Halim, M., & Animah, A. (2023b). Determinants of Islamic social reporting disclosure and its effect on firm’s value. Journal of Islamic Accounting and Business Research, 14(3), 416–435. https://doi.org/10.1108/JIABR-10-2021-0277

Thottoli, M. M. (2023). The interrelationship of marketing , accounting and auditing with corporate social responsibility. PSU Research Review, 7(2), 117–136. https://doi.org/10.1108/PRR-12-2020-0045

Triyuwono, I. (2015). Akuntansi Syariah Perspektif, Metodologi, dan Teori (Kedua). Rajawali Pers.

Yunda, L. I., Rangkuty, D. M., Saputra, J., & Rusiadi. (2024). Compare of the Islamic Banking System At Indonesia and Malaysia. Proceeding of International Conference on Education, Society and Humanity, 2(1), 547–553.

Yusuf, M., Dasawaty, E., Esra, M., Apriwenni, P., Meiden, C., & Fahlevi, M. (2024). Integrated reporting, corporate governance, and financial sustainability in Islamic banking. Uncertain Supply Chain Management, 12(1), 273–290.

Zainal, N., Md Nassir, A., Kamarudin, F., & Law, S. H. (2021). Does bank regulation and supervision impedes the efficiency of microfinance institutions to eradicate poverty? Evidence from ASEAN-5 countries. Studies in Economics and Finance, 38(2), 272–302.