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Journal : JURNAL MANAJEMEN BISNIS

Risk Management Model of the Islamic Ethical Practice Dimension (i-EP) Hasyim, Diana; Budiarta, Kustoro; Lubis, Nurul Wardani; Parulian, Edison; Syarif, Shamir Hashim
Jurnal Manajemen Bisnis Vol. 11 No. 2 (2024): September
Publisher : Pusat Penerbitan dan Publikasi Ilmiah, FEB, Universitas Muslim Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.33096/jmb.v11i2.906

Abstract

Adoption of Sharia Compliance (SC) is one of the dimensions of Islamic Ethical Practice (i-EP) or Islamic Corporate Social Responsibility (i-CSR), which can potentially lead companies to obtain several significant capital market benefits, including affecting risk (cost of equity). However, whether and to what extent SC influences the cost of equity is still an issue and has yet to be widely documented at the theoretical and empirical levels, especially in the Indonesian context. Apart from the low level of cash holding, the evidence gap shows that the Indonesian Sharia financial screening criteria are more liberal than the international criteria, which indicates that Indonesian SC leverage contains a higher financial risk premium, thus possibly having implications for estimating the high expected return of investments and in turn the effect of SC on the cost of equity potentially has different empirical significance from international finding. Implications of liquidity and risk premium on the cost of equity indicate that SC's influence on the cost of equity is more complex than simple causality. Therefore, it is necessary to build a more comprehensive system by formulating contingency factors in the relationship between SC and the cost of equity. The finding reveal from 891 observations that the link between SC and cost of equity is fully mediated relationship, which indicates that SC can only affect the cost of equity with good reputation and by improving performance.
Co-Authors Adelina Lubis Ageng Jihan Faradilla Agus Rahmad Hidayat Agus Rahmad Hidayat Agustina Nainggolan Ahmad Fadhila Ahmad Hidayat Al Arif, Rio Tabri Amalia, Delvi Dede Ananda Amelia Sembiring Anggraini, Silvia Ardana, Tasya Novi Ardini, Sarah Fadhila Ardini, Sarah Fadhilla Arnol Wandra Zega Asrye Tutur Sinaga Ayuningrum, Utrie Sekar Az Zahra, Ariza Azzahra Sherlinda Azzuhra, Syafrida Beby Karina F Sembiring Bio Hasian Siregar Brahmansyah, Alvino Brandon Yapto Budiarta, Kustoro Budiarta, Kustoro Dani, Artika Rahma Dani Delvi Dede Amalia Dhian Rosalina, Dhian Diana Hasyim Diana Hasyim Dicky Ardiansyah Aceh1 Dina Aulia Dinda Annisa Rani Doloksaribu, Winda Sri Astuti Dongoran, Diana Dwi Fatmi Adelina Tafonao Dwi Fatmi Adelina Tofano Edison Edison Effendi, Ihsan Eka Danta Jaya Ginting Elisa Friska Simarmata EMANUEL ZEBUA Esther Praja Anggriany Panggabean Fadhila, Ahmad Febri Andrian Tanaka Filbert Filbert Fitrija Yolina Br Keliat Fitriyani Pasarib Gaby P F Tampubolon Ginting, Kristi Endah Ndilosa Harahap, Elfi Damayanti Harahap, Fildzah Haryani Herawati Herawati Herawati Herawati Herlina Novita Idrus Hamonangan Pane Ike Rukmana Sari Indah Apriliya Indah Monalisa Isna Asdiani Nasution Jamaluddin Jamaluddin JHOLANT BRINGG LUCK AMELIA BR SINAGA Jhon Kas Mote Juan Charmel Askelon Siregar Julistia Wardhani Kartika Anggraeni Simbolon Kartika Anggraeni Simbolon Keumala Hayati Khairuna, Wan Ridha Laras Fitri Aini Hasibuan lestari, winda Lidya Natalia Pasaribu Limbong, Novia Grace Lubis, Karina Safitri Lubis, Melani Catherine Lubis, Nabila Boru Lumbantoruan, Ananda Cristoper Mairani, Farahdilla Maisara Batubara Malau, Epa Jesika Roulini Malau, Grace Theresia Manalu, Yesaya Dandy Manullang, Junita Cantika Mas Intan Purba Michelle Michelle Mila Yulia Herosian Muhammad Agung Anggoro Muhammad Alfaridzi Batu Bara Nabilanasywa, Adzra Nadia Nainggolan, Agustina Narda Kalyana Rajagukguk Nasution, Isna Asdiani Nasution, Siti Aminah Nirwani, Sekar Pandiangan, Billi Verdinando Panggabean, Esther Praja Anggriany Panggabean, Putri Anggreini Peter Juliyaman Zendrato Purba, Jui Fivri Purba, Mas Intan Purba, Mas Intan Putri Anggi Oktavia Harahap Putri Najwa Safitri Putri, Shakila Natali Putri, Tantri Octora Dwi Syah Rafida Khairani Rajagukguk, Narda Kalyana Rani, Dinda Annisa Resnita Mersalina Simbolon Reyka Triana Yohana Sidabatur Reyka Triana Yohana Sidabutar Riki Priyandi Riris Amigo Simatupang Riris Amigo Simatupang Riski Epreden Ginting Riyanthi Br Sinuhaji, Ema Paska Rizky Alhaq Nasution Ryan Mauliza T Sagala, Fajar Siddiq Almunawar Samosir, Wenny Romauli Sarah Fadhilla Ardini Satria, M. Rayhan Sekar Nirwani Sembiring, Ananda Amelia Shakila Natali Putri Sherlinda, Azzahra Siburian , Kristina Mesya Yulianti Siburian, Kristina Mesya Yulianti Sidabutar, Reyka Triana Yohana Simarmata, Elisa Friska Simbolon, Resnita Mersalina Sinaga, Jholant Bringg Luck Amelia Br Sinaga, Mulyati Patresia Siregar, Bio Hasian Sitanggang, Rexsy Mardohot Sitanggang, Yuriska Zatira Sitindaon, Natanael Situngkir, Jenni Sri S Rumabutar Sumber Alam Mulia Hasibuan Syahbudin, Jafar Syarif, Shamir Hashim Syukron Arjuna Tantri Octora Dwi Syah Putri Tarigan, Nimia Eliani Br Tasya Novi Ardana Tedi Sumarna Bangun Tofano, Dwi Fatmi Adelina Triansyah, Fadli Agus Umaira, Nabila Venny Sabaryani Br Barus Vhebe Chloe Tanjaya Vina Maria Ompusunggu Wiko Rizki Wijaya Wimbi Prima Hadi Yanti Musyawarah Yeni Rafita Sihombing YUPITER MENDROFA Zendrato, Peter Juliyaman