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Effect of Quality of Good Corporate Governance Disclosure, Leverage and Firm Size on Profitability of Isalmic Commercial Banks

Author

Listed:
  • Enni Harisa

    (Department of Accounting, Economics Faculty, Sriwijaya University, Palembang, Indonesia,)

  • Mohamad Adam

    (Department of Accounting, Sriwijaya University, Palembang, Indonesia)

  • Inten Meutia

    (Department of Accounting, Sriwijaya University, Palembang, Indonesia)

Abstract

The purpose of this study was to determine the effect of the quality of disclosure of good corporate governance (GCG), leverage, and firm size on profitability in Islamic commercial banks in Indonesia and Malaysia. The data used in this study were obtained from the website of each bank in the period 2011-2017 with a total sample of 16 Islamic commercial banks. The data analysis technique used in this study is panel data regression analysis. The results showed that the quality of GCG disclosure and leverage had an effect on profitability while the firm size variable had an effect on profitability.

Suggested Citation

  • Enni Harisa & Mohamad Adam & Inten Meutia, 2019. "Effect of Quality of Good Corporate Governance Disclosure, Leverage and Firm Size on Profitability of Isalmic Commercial Banks," International Journal of Economics and Financial Issues, International Journal of Economics and Financial Issues, vol. 9(4), pages 189-196.
    • Handle: RePEc:eco:journ1:2019-04-22
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    References listed on IDEAS

    as
    1. Jensen, Michael C. & Meckling, William H., 2008. "Theory of the firm: managerial behavior, agency costs and ownership structure," RAE - Revista de Administração de Empresas, FGV-EAESP Escola de Administração de Empresas de São Paulo (Brazil), vol. 48(2), April.
    2. Margaritis, Dimitris & Psillaki, Maria, 2010. "Capital structure, equity ownership and firm performance," Journal of Banking & Finance, Elsevier, vol. 34(3), pages 621-632, March.
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    Cited by:

    1. Md. Kamal Uddin, 2022. "Effect of Leverage, Operating Efficiency, Non-Performing Loan, and Capital Adequacy Ratio on Profitability of Commercial Banks in Bangladesh," European Journal of Business and Management Research, European Open Science, vol. 7(3), pages 289-295, May.
    2. Seyed Alireza Athari & Mahboubeh Bahreini, 2023. "The impact of external governance and regulatory settings on the profitability of Islamic banks: Evidence from Arab markets," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(2), pages 2124-2147, April.
    3. Ozair Siddiqui & Abdul Raheman, 2025. "Corporate governance and value addition in Pakistan: a nonlinear moderation of Shariah compliance," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 22(4), pages 991-1004, December.
    4. Bambang Sutopo & Arum Kusumaningdyah Adiati & Purnama Siddi, 2021. "Is The Higher Debt Level Profitable for State-Owned Enterprises?," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 243-256.
    5. Purwanto Purwanto & Isnain Bustaram & Subhan Subhan & Zef Risal, 2020. "The Effect of Good Corporate Governance on Financial Performance in Conventional and Islamic Banks: An Empirical Studies in Indonesia," International Journal of Economics and Financial Issues, International Journal of Economics and Financial Issues, vol. 10(3), pages 1-6.

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    JEL classification:

    • M4 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • G2 - Financial Economics - - Financial Institutions and Services
    • G3 - Financial Economics - - Corporate Finance and Governance

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