The Effect of Corporate Social Responsibility Disclosure on the Performance of Islamic Banks in Indonesia

Rahmiatul Aula, Sumiyati Sumiyati, Muhammad Umar Mai

Abstract


Research aims: This study intends to inspect the effect of Corporate Social Responsibility Disclosure (CSRD) on performance. CSRD was divided into CSRD-All, CSRD-Economic, CSRD-Environment, and CSRD-Social variables. Performance was proxied by the variables ROA and ROE.
Design/Methodology/Approach: The research model was built in path analysis and processed using the Wrap-PLS application.
Research findings: The analysis results indicated that CSRD tended to be strongly associated with higher bank performance. It was indicated by a significant positive effect of CSRD-All on ROA and ROE. In addition, it was indicated by the significant positive effect of CSRD-Economic and CSRD-Environment on ROA. This study's results contribute to financial literature, particularly the causal relationship between CSRD and Indonesian Sharia Commercial Banks' performance.
Theoretical contribution/ Originality: The study results provide insight and input for the management of Islamic Commercial Banks concerning CSRD activities and performance.
Practitioner/Policy implication: The results of this study are supposed to be useful as directions for stakeholders in deciding their investment in Indonesian Sharia Commercial Bank shares.
Research limitation/Implication: This research only used CSRD, ROA, and ROE.


Keywords


CSR; Performance; ROA; ROE

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References


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DOI: https://doi.org/10.18196/mb.v13i1.12832

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