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Journal : Review of Islamic Economics and Finance

Corporate Governance Mechanism: Its Role Against the Criteria for Sharia Stocks and Share Prices Moch. Edman Syarief; Dadang Hermawan; Leni Nur Pratiwi
Review of Islamic Economics and Finance Vol 5, No 1 (2022): Review of Islamic Economics and Finance : June 2022
Publisher : Universitas Pendidikan Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.17509/rief.v5i1.45011

Abstract

Purpose - This study examines the effect of corporate governance mechanisms represented by the number of board of commissioners and board of directors on the fulfillment of sharia stock criteria and stock prices. Methodology - The data collected from 195 Islamic issuers listed on the Indonesian Sharia Stock Index with the observation period of the 2012- 2016 on the annual report. The analytical tool used is a robust path analysis using WARP PLS. Findings - The results of the study state that there is a direct influence of the corporate governance mechanism on the fulfillment of sharia stock criteria, there is an indirect influence from the board of commissioners through the board of directors on sharia stock criteria, but there is no indirect influence on stock prices. The average value of TUBTA and NPI is well below the maximum limit set by OJK, and there is no sharia compliance officer in the company under study. The existence of compliant sharia officers may be a solution for differences in the influence that occurs between the commissioner's board and the board of directors on the fulfillment of Islamic finance criteria.Keywords: Board of commissioners; board of directors; sharia stock financial criteria; stock prices.
Co-Authors Aditya Dais Gumara Ambia Masthura Yussaivi Andzar Izzurrahman Anggraeni, Khaerunisa Suci Anhar Firdaus Firdaus Anita Putri Annisa Nur Safitri Arizal Jaya Arry Irawan Arwan Gunawan Ash Shidqi, Muhammad Irsyad Banter Laksana, Banter Carol Y Lu Chanda Fawwaz Mahesa Dadang Hermawan Dadang Hermawan Dadang Hermawan Dea Apriyani Destian Arshad Destian Arshad Darulmalshah Tamara Dian Imanina Burhany Diani Nabila Putri Diharpi Herli Setyowati Dimas Sumitra Danisworo Djuwarsa, Tjetjep Driyastutik, Windari Dwi Suhartanto DWI SUHARTANTO Eka Nurmala Sari Elviera Maharani Endang Hatma Juniwati Essa, Satrija Prajna Fatoni, Muhammad Iqbal Fifi Afiyanti Fira Febrina Fitri, Tia Nur Fitriah Fatimah Amatilah Ghifari, Muhammad Jihad Al Gymnastiar, Raihan Firdaus Hadiani, Fatmi Hanifa Khoirunnisaa Heryanto Hasbi Assidiki Hasbi Assidiki Mauluddi Hendi Rohendi Indah Kumala Sari Intan Nurrachmi Intantri Lestari Iwan Setiawan Katsirin, Khairul Khoirun Nisa Nurul Muslimah Kristianingsih Kristianingsih Leni Nur Pratiwi Leo, Gundur Liana Oktaviani Syahrir Lily Indrawati Limayyasa, Risma Lya Amailiya Maisa Frita Winesa Marwansyah, Marwansyah Mayasari, Ine Melani, Farida Andy Mochamad Umar Mai Mufti, Fauzan Ali Muhamad Arif Nugraha Muhammad Muflih Muhammad Syaiful Nurasman Muthia Faridatunnisa Muthia Nur Soniati Nabila Nur Khairina Naila Shafia Hamid Alfani Noorsyah Adi Noer Ridha Novianti, Ira Novianty, Ira Noviatul Fitriya Nurdin, Ade Ali Pebrianti, Gita Nuralipah Pramudia, Rizkie Anugerah Prasetyo Widodo, Annis Azizah Purbayati, Radia Putri Deliana Febrianti Radia Purbayati Rani Putri Kusuma Dewi Raya Puspita Sari Hasibuan Rezeki, Fuzi Amali Sri Riauli Susilawaty Hutapea Rizkie Anugerah Pramudia Rizqia Nur Afifah Ruhadi Ruhadi Ryhan Firdausy Noor Dermawan Sembiring, Etti Ernita Setiawan Setiawan Setiawan, S Shafira, Ranti Firdha Sudjana Sudjana Suherlan, Deiana SUMIYATI SUMIYATI Tiara Putie Purwitasari Tjetjep Djuwarsa Tresna Pratiwi Tripuspitorini, Fifi Afiyanti Widhansetyati, Purwanti Wiwin Roslinda Sidebang Yayat Nurhidayat Yeti Apriliawati, Yeti