Economics & Islamic Finance Journal (ECIF)
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The Effect of Debt Policies, Intellectual Capital, and Corporate Governance Mechanisms on Firm Value in Companies in the Consumer Goods Industry Sector Listed on the Indonesia Stock Exchange for the Period 2020-2023
Get PDFThis study aims to determine the effect of debt policy, intellectual capital, and good corporate governance mechanisms on firm value. Indicators used to measure good corporate governance mechanisms in this study is the managerial ownership, institusional ownership, and independent commissioner. Debt policy variable is measured using debt to equity ratio, intellectual capital variables are measured using the Pulic model (1998), while the variable firm value is measured using Tobin’s Q. The population in this study is the consumer goods industry sector listed on the Indonesia Stock Exchange for the 2020-2023 period were 34 companies. The sample in this study was taken using a purposive sampling method and obtained as many as 33 sample companies. This study uses multiple linear regression analysis and descriptive statistics processed with SPSS 22. The results showed that the variable of debt policy, intellectual capital and independent commissioner variables have a significant effect on firm value. The results also prove that managerial ownership and institusional ownership do not have significant effect on firm value
The Role of Company Size as a Moderator in the Relationship of Governance, Green Financing, and Profitability to Sustainability Reporting Disclosure in the Financial Sector
Get PDFGrowing pressures from stakeholders for transparency is driving the need for financial sector firms to enhance the Sustainability Reporting Disclosure (SRD). Although differences in disclosure continue to coexist within the context of identical regulation, this issue implies some research questions and gaps: what are the determinants of these differences in the two countries? This is the premise upon which this work seeks to explore the impact of board size, gender diversity, Green Financing, and Return on Assets (ROA) on SRD, and the moderation effect of company size. Applying quantitative method, this research analyses secondary data collected from financial sector companies which were listed in the BEI during 2019–2023. The direct and interaction effects are estimated using moderation regression. The results indicated that board size, gender diversity, and Green Financing have significant positive influence on SRD, however, ROA to SRD is positive but insignificant. Finally, firm size moderated the effect of board size, gender diversity, and Green Financing on SRD, while it did not moderate the effect of ROA and SRD. The results of this study support the stakeholder theory that environmental governance and performance are expected to improve the quality of sustainability disclosure in organization when scaled up. The originality of the paper lies in the simultaneous combination with respect to controls, Green Financing, profitability and the moderation of company size in the distinctive context of regulated industries
The Role of Halal Supervisors in Assisting MSMEs in Obtaining Halal Certification at the Jakarta Sharia Quality Audit Institution in 2025
No full textHalal certification is a crucial instrument for ensuring the halal status of products while strengthening business competitiveness in the global market. However, many Micro, Small, and Medium Enterprises (MSMEs) still face challenges in obtaining halal certification, including administrative challenges, regulatory compliance, and limited resources. The presence of halal supervisors at Halal Inspection Institutions (LPH) is a strategic factor in bridging this gap. This study aims to analyze the role of halal supervisors in assisting MSMEs to obtain halal certification, using a case study of the LPH Quality Syariah. The research approach employed a descriptive qualitative method through in-depth interviews with halal supervisors, MSMEs, and halal auditors. The results indicate that halal supervisors act as educators who improve halal literacy, facilitators in document preparation and administrative requirements fulfillment, mediators between MSMEs and certification institutions, and drivers of halal product competitiveness. This strategic role has resulted in an increase in the number of halal-certified MSMEs and strengthened their readiness to enter the national and global halal industry supply chain. This study emphasizes the importance of strengthening the capacity of halal supervisors and cross-institutional synergy to accelerate the implementation of halal certification in Indonesia
The Effect of Islamic Financial Literacy, Return Perception, and Risk Perception on Investment Decisions in Sharia Stocks with Experienced Regret as a Moderation Variable (Case Study on the Indonesian Muslim Merchants Association)
Get PDFThis study aims to identify the influence of Islamic financial literacy, return perception, and risk perception on investment decisions by involving experienced regret as a moderating variable. This research is a quantitative research whose data source comes from questionnaires distributed to 100 ISMI members. The data were analyzed using partial least square technique with the help of SMARTPLS 3 software. The results showed that Islamic financial literacy, return perception, and risk perception have a positive and significant effect on investment decisions. In addition, there is a moderating role of experienced regret in strengthening the influence of Islamic financial literacy, return perception, and risk perception on investment decisions
The Impact of Capital Market on Industrial Growth in Nigeria: Does Islamic Capital Market an Alternative?
Get PDFOver the years, capital markets have played a pivotal role in channelling funds towards the industrial sector, thus influencing the Nigeria’s industrial and economic progress. This study explores the intricate relationship between capital market and industrial growth and development in Nigeria, and whether the Islamic capital market can be the alternative in increasing the value of transactions in government and industrial securities to enhance industrial development in Nigeria. The study employs a comprehensive research framework that encompasses Johansen and Johansen (JJ) co-integration regression analyses. The findings of this research underscore the significance of capital markets as a critical driver of industrial growth in Nigeria. The capital raised through these markets has contributed to expanding existing industries and establishing new ones. It has facilitated technological advancements, improved infrastructure, and enhanced the competitiveness of Nigerian industries on the global stage. In conclusion, this research explodes the pivotal role of capital markets in shaping the industrial landscape of Nigeria. By understanding and addressing the challenges, policymakers, and stakeholders can harness the full potential of capital markets to drive sustainable industrial growth and development, ultimately contributing to the broader economic prosperity of the nation. Moreover, structuring and strengthening the non interest Islamic capital market is paramount, this is in order to avoid exorbitant interest rate charged in the structure of financial market instruments and served as alternative to conventional capital market. Islamic capital market provides an alternative capital as well as varieties of financial instruments that may be productive to industrial sector such as Sukuk, among others. These financial assets are capable of minimising cost of borrowing, as the product of Islamic capital market are not giving fund directly as loan of capital, in this case Islamic capital market would finance the earmarked industrial projects till completed (like Bay Salam)
Digital Muamalah Transaction Transformation: Fintech Integration with TSR Principles
Get PDFThis study examines the transformation of digital muamalah contracts in Islamic fintech, focusing on the integration of the Tawhid String Relationship (TSR) and Transaction Cost Theory (TCT) principles. The emerging phenomenon is a shift from conventional transactions to digital platforms that comply with Islamic principles. However, there is a gap between technological developments and Islamic jurisprudence (fiqh) understanding regarding Islamic digital transactions, leading to challenges in Islamic compliance. This study uses a qualitative approach with secondary data collection through relevant literature. The results show that the application of technologies such as blockchain and smart contracts can increase efficiency and transparency in digital transactions, but still require strict supervision to ensure compliance with Islamic principles. Maqasid Sharia serves as a foundation to ensure that every innovation continues to support the welfare of the community. The theoretical implication of this study is the development of TSR and TCT theories in the context of Islamic fintech, while the practical implication is the need for clearer regulations and more intensive education to increase Muslim literacy regarding digital contracts. This study also provides suggestions for the development of more efficient and Islamic fintech platforms in Indonesia that comply with Islamic principles
Government Bank & Regional Development Bank: A Sustainable Development Financing Synergy
Get PDFGlobal warming and climate change caused by emissions are currently a priority concern for the world because they will have a direct and significant impact on the survival of all living things. As financial institutions that provide financing to the industrial sector, government banks and regional government banks financing can potentially develop the Indonesian economy while having a negative impact on emissions from industrial sector activities. By adopting the Vector Error Correction Model (VECM), this reserach reveals that government banks and regional government banks have a significant impact to the sustainable development index. However, in addition to the two types of banks only identified as short-term financing, the proportion of influence generated sequentially for government banks and local government banks are only 13% and 11%. Finally, the need for large funds and a long financing repayment period are significant aspects in building a more sustainable industrial and economic climate
Performance of Sharia Commercial Bank In Indonesia The Role Of Intellectual Capital And Islamicity Performance Index
Get PDFThis study aims to determine the effect of Intellectual Capital and Islamicity Performance Index on the profitability of Islamic commercial banks in Indonesia with the panel data analysis method using Eviews 10. The sample is determined based on the purposive sampling method, with a total sample of 6 Islamic banks and produces 30 observation samples because it uses reports annual finances. The results of the study prove that Intellectual Capital, equitable distribution ratio and Islamic income vs. non-Islamic income ratio have no effect on profitability. while the profit sharing ratio and zakat performance ratio affect profitability. This study provides evidence that the performance of Islamic banking can be proven from various aspects, the variables used in this study are influential and some are not. The implications of this research for companies are expected to be complementary material and useful input and considerations for companies and readers are expected to see the results of this research as useful information material and can be used for the benefit of readers. This research has enormous value, it is hoped that Islamic banking can apply Islamic principles in its operational activities in this study, namely Intellectual Capital, PSR, ZPR, EDR, and IIR
Impact of Good Corporate Governance, ESG, and Capital Structure on Firm Value: An Empirical Study of Food and Beverage Companies Listed on the IDX (2021–2024)
Get PDFThis study aims to analyze the effect of Good Corporate Governance (GCG), Environmental Social Governance (ESG), and capital structure on firm value. The background of this research is the importance of implementing corporate governance and sustainability practices to improve competitiveness in Indonesia\u27s food and beverage sector. This study uses a quantitative approach with secondary data obtained from annual and sustainability reports of companies listed on the Indonesia Stock Exchange during 2021–2024. Samples were selected using purposive sampling and analyzed with panel data regression using EViews. The results show that GCG and capital structure have no significant effect on firm value, while ESG has a positive and significant effect. This indicates that sustainability practices play an important role in shaping investor perception of firm value. The study implies the importance of integrating ESG principles into business strategy and corporate governance policies.
Islamic FinTech: Opportunities and Challenges
No full textIslamic FinTech, an intersection of Islamic finance principles and innovative financial technology, presents a dynamic landscape ripe with opportunities and challenges. This paper explores the burgeoning field, analyzing its potential impact on the Islamic finance industry and broader financial ecosystem. Opportunities abound in Islamic FinTech, driven by its ability to cater to the unique needs of Muslim consumers worldwide. Technology facilitates greater financial inclusion, offering Sharia-compliant solutions for banking, investment, and insurance. Digital platforms enable access to Islamic financial products and services, empowering previously underserved populations. Moreover, FinTech enhances efficiency in Islamic finance operations, streamlining processes such as compliance, risk management, and customer service.However, Islamic FinTech also faces notable challenges. Regulatory frameworks must adapt to accommodate innovative digital solutions while ensuring compliance with Sharia principles. Ethical considerations regarding data privacy, security, and transparency necessitate careful navigation. Additionally, cultural and religious diversity within Muslim communities requires tailored FinTech solutions to address varying preferences and interpretations of Islamic finance. Furthermore, technological advancements bring risks such as cyber threats and algorithmic biases, demanding robust cybersecurity measures and ethical AI practices. Moreover, the rapid pace of innovation may outstrip traditional Islamic finance education and expertise, highlighting the need for ongoing skill development and collaboration between FinTech developers and Islamic finance scholars. In conclusion, Islamic FinTech presents vast opportunities to revolutionize the Islamic finance landscape, promoting financial inclusion and innovation. However, addressing regulatory, ethical, and technological challenges is crucial to harness its full potential responsibly. Collaboration between stakeholders, including regulators, financial institutions, technology firms, and Islamic scholars, is essential to navigate these complexities and ensure the sustainable growth of Islamic FinTech