Economics & Islamic Finance Journal (ECIF)
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Profitability, Leverage, and Company Size: A Comparative Analysis of Manufacturing Firm Value in Indonesia and Malaysia During COVID-19
Get PDFThis study examines the influence of profitability (Return on Assets/ROA), leverage (Debt-to-Equity Ratio/DER), and company size (LNAssets) on company value (Tobin’s Q) in Indonesia and Malaysia during the COVID-19 pandemic. The research aims to compare these relationships in both countries, considering differences in market maturity and investor behavior. Employing a quantitative approach, the study uses secondary data from 50 manufacturing companies in Indonesia and 42 in Malaysia, covering 2019–2021. Multiple linear regression was applied to analyze the data. The findings reveal that ROA positively impacts company value in both countries, with a more substantial effect observed in Indonesia due to its less mature market environment. DER also positively influences company value, as moderate leverage signals financial stability and growth potential. However, LNAssets negatively affect company value in Indonesia, reflecting agency conflicts and operational inefficiencies, while its effect in Malaysia is insignificant, indicating better governance and asset management. The results highlight that market dynamics and investor sophistication shape the effect of financial metrics on company value. This study offers practical implications for investors and policymakers. It provides insights into interpreting financial signals across different market contexts for investors. For policymakers, it underscores the importance of enhancing corporate governance in Indonesia to mitigate agency conflicts. The study’s novelty lies in its comparative analysis of Indonesia and Malaysia, demonstrating how market maturity and governance structures influence the relationship between financial metrics and company value. These findings contribute to firm performance and valuation literature during economic disruptions
The Impact of Macroeconomic Variables, Financing Risks, and Third-Party Funds on Islamic Banking\u27s Profitability
Get PDFoai:ojs2.ejournal.bacadulu.net:article/8The aim of this research was to examine the impact of macroeconomic variables, financing risks , and third-party funds on the profitability of Islamic banking. The GDP and inflation are the macroeconomic variables that are taken into effect. Non-performing financing (NPF) is the financial risk that is used. Islamic banks that are registered with the Financial Services Authority (OJK) for the 2019–2020 sample period represent the research population. Purposive sampling was the technique used, and the sample size consisted of fourteen Islamic banks. This study used Eviews 10 to do mutivariate regression analysis as its data analysis tool. The findings showed that the GDP and inflation, two macroeconomic variables, had no impact on the profitability of Islamic banking. Profitability is significantly impacted by third party funds, whereas Islamic banking\u27s profitability is significantly impacted negatively by NPF
Literacy of Pension Fund Practice in Indonesia
Get PDFThis article discusses the practice of pension funds in Indonesia, covering historical developments, current challenges, and obstacles arising from government regulations and other social aspects. This article explores the evolution of pension funds, the legal framework that governs their operations, and the socioeconomic factors that influence their growth. Key challenges include regulatory barriers and the need to increase public awareness. This study contributes to the understanding of how pension funds can better serve the elderly population in Indonesia
The Influence of Financial Derivatives, Financial Leases and Institutional Ownership on Tax Avoidance
Get PDFThis research falls under the category of quantitative research, aiming to ascertain the impact of the variables Financial Derivatives, Financial Leases, and Institutional Ownership on the variable Tax Avoidance. The study focuses on manufacturing companies listed on the Indonesia Stock Exchange, employing a purposive sampling method that yields a sample size of 19 companies. The analysis is conducted with a 5% significance level, utilizing the Panel Data Regression Analysis Method facilitated by the E-Views 12 computer program. The findings of the analysis reveal that (1) there is no statistically significant effect of financial derivatives on tax avoidance, (2) there is a significant effect of financial leases on tax avoidance, and (3) there is no significant effect of institutional ownership on tax avoidance
A Comparative Study Of The Financial Performance Of Islamic And Conventional Banks In Peshawar
Get PDFThe research aimed to assess the financial performance of Islamic and Conventional banks in Peshawar between 2006 and 2014. To facilitate comparison, five Islamic banks were matched with five similarly sized conventional banks. The study revealed that Islamic banks outperformed conventional banks in efficiency, return, and asset quality. However, Islamic banks faced challenges in areas such as advances, investment, liquidity, deposits, and capital, where conventional banks showed better performance. Islamic financial institutions often impose higher spreads and allocate a smaller portion of distributable income to depositors in comparison to conventional banks. To enhance credibility and contribute to Islamic socio-economic goals of fairness and equality, it is important for Islamic banks to prioritize equitable profit distribution to depositors. Additionally, these banks should emphasize the creation of novel products and inventive solutions to cater to client demands, while also bolstering their equity foundation
Advancing Islamic Financial Planning in Indonesia: Principles, Challenges, and The Role of Tawhid String Relationship Theory
Get PDFThe rapid development of Islamic or Sharia financial planning in Indonesia reflects the country’s demographic strength as the largest Muslim-majority nation. Rooted in Sharia principles, Islamic financial planning emphasizes the prohibition of riba, gharar, and maysir, integrating ethical wealth management, risk-sharing, and social responsibility through mechanisms like zakat, waqf, and sadaqah. Despite a significant increase in Islamic financial literacy, challenges persist, including limited accessibility in rural areas and low public understanding of Islamic financial concepts. This study aims to identify the basic principles and concepts of Islamic financial planning, highlight the urgency of its implementation, and examine its practical application in Indonesia. Using a descriptive qualitative approach and literature review, the research draws on secondary data from Qur’anic texts, Hadith, academic journals, and regulatory reports from institutions like OJK and Bank Indonesia. The findings emphasize the pivotal role of the Tawhid String Relationship (TSR) theory in aligning financial practices with spiritual and societal obligations. TSR provides a comprehensive framework for ethical and sustainable financial management, connecting human relationships with Allah (habluminallah) and society (habluminannas). The study concludes that Islamic financial planning in Indonesia offers substantial opportunities for growth through fintech innovations and regulatory support. Its implementation can foster inclusive economic development, strengthen social welfare, and position Indonesia as a global leader in Islamic finance. The study provides theoretical insights and practical implications for advancing Islamic financial systems in both national and global contexts
Cultural Strategy of Trustworthy, Competent, Harmonious, Loyal, Adaptive, and Collaborative (AKHLAK) at a BUMN Company in Jakarta
Get PDFThis research aims to evaluate and enhance the effectiveness of the implementation of AKHLAK values as the cultural foundation in the State Owned Enterprises (SOE). This research employs a qualitative triangulation approach. Observations, interviews, and data triangulation are conducted to delve into the impact of the implementation of organizational culture and AKHLAK training in the state-owned enterprise (SOE). The research utilizes NVivo12 to support data analysis. Research findings the need for improvement and collaboration within the business unit. The development of AKHLAK training is recommended through needs analysis, program design, inter-departmental collaboration, continuous learning, emphasis on corporate culture, evaluation and feedback, as well as recognition and acknowledgment. The strategy involves exemplary leadership behavior, clear policies, a collaborative culture, performance evaluation related to AKHLAK, commitment to sustainability, and transparency. Despite positive progress, sustained efforts are required to ensure that AKHLAK values are reflected in employee behavior and support the achievement of corporate goals
The Effect of Murabahah, Mudharabah, Musharakah and Ijarah Financing on The Level of Net Profit
Get PDFThis research aims to examine the effect of financing murabahah, mudharabah, musyarakah and ijarah of towards the level net profit. This research was conducted on companies registered in Islamic Commercial Banks. The population in this study amounted to 13 companies in the period 2012-2017. Samples were taken using purposive sampling method. Samples that meet the criteria of 5 companies. Data analysis method uses multiple linear regression analysis. The results of this research indicate that the financing murabahah and financing mudharabah are significant effect on the towards the level net profit, while financing musyarakah and financing ijarah no significant effect on towards the level net profit registered in Islamic Commercial Banks
Factors Determining Non-Performing Financing In Islamic Banks In Indonesia
Get PDFThis study aimed to determine the factors that impact non performing financing at Shariah Bank in Indonesia (Empirical study based on Shariah Bank listed on Indonesia financial services authority for the period 2017- 2020). This study is using purposive sampling as sampling method, which is sampling technique using several consideration according to the used criteria to determine how much sample to be studied and the final results obtained 44 samples. The type of this study is quantitative and the data that used for this study is secondary data. This study uses multiple regression analysis as a testing tool. The result of this study indicate capital adequacy ratio and shariah board committee shows a negative effect on non performing financing, operational efficiency ratio (BOPO) shows a positive effect on non performing financing. Meanwhile BI Rate, inflation, and independent commissioner had no effect on non performing financing
The Effect of Family Ownership, Profitability, and Sales Growth on Tax Avoidance in Manufacturing Companies on the Indonesia Stock Exchange for the Period 2020-2022
Get PDFThis quantitative study aims to determine the effect of family ownership, profitability, and sales growth on tax avoidance. This study uses manufacturing companies listed on the IDX in 2020-2022. The sample selection of manufacturing companies in this study used the purposive sampling method, and the number of acceptable samples was 153 of the total number. Hypothesis testing in the study used panel data regression analysis with a significance level of 5% (0.05). The results of the test obtained: (1) there is no effect of family ownership on tax avoidance, (2) there is an effect of profitability on tax avoidance, and (3) there is an effect of sales growth on tax avoidance. The implication of this research is to provide information and references related to the variable determinants of tax avoidance in the manufacturing sector in the period 2020 to 2022