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Profitability and Financial Performance in Islamic Commercial Banks: Testing the Role of Good Corporate Governance as a Moderating Variable Meila Catur Arista; Zulfikar Zulfikar
Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE) Vol 8 No 2 (2025): Sharia Economics
Publisher : Universitas KH. Abdul Chalim Mojokerto

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.31538/iijse.v8i2.6497

This study examines the impact of profitability on financial performance in Islamic Commercial Banks and the moderating role of Good Corporate Governance (GCG) from 2019 to 2023. Using purposive sampling, 15 banks registered with the Financial Services Authority (OJK) were analyzed based on annual reports, though data limitations due to missing or incomplete reports posed challenges. Financial performance was measured by Return on Assets (ROA), while profitability was assessed through Net Profit Margin (NPM). GCG variables included the Independent Board of Commissioners, Board of Directors, Institutional Ownership, Sharia Supervisory Board, and Audit Committee, selected for their role in maintaining financial stability and ensuring compliance with Sharia principles. The results, analyzed using multiple linear regression and Moderated Regression Analysis (MRA), indicate that profitability significantly influences financial performance. However, the Independent Board of Commissioners, Board of Directors, and Institutional Ownership did not strengthen this relationship, likely due to their advisory rather than managerial roles. In contrast, the Sharia Supervisory Board and Audit Committee enhanced the relationship, highlighting the importance of Sharia compliance and financial oversight. The study is limited by sample size and data constraints, impacting result generalizability. Future research should expand the sample and explore additional governance mechanisms unique to Islamic banking to provide deeper insights into financial performance determinants.

Government Investment and Government Expenditure on Regional Original Income of Central Java Province 2021 - 2023 Rif'an Frandika Adi Ghufron; Zulfikar Zulfikar
Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE) Vol 8 No 2 (2025): Sharia Economics
Publisher : Universitas KH. Abdul Chalim Mojokerto

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.31538/iijse.v8i2.6650

This study investigates the effect of corporate investment and government expenditure on regional original revenue (Pendapatan Asli Daerah or PAD) in Central Java Province during the period of 2021 to 2023. The research specifically tests the hypotheses that (1) corporate investment has a positive and significant effect on regional revenue, and (2) government expenditure has a positive and significant effect on regional revenue. Using a multiple linear regression model, the analysis incorporates classical assumption tests, including normality, multicollinearity, autocorrelation, and heteroscedasticity, alongside statistical evaluations such as R, adjusted R², F-tests, and t-tests, processed using SPSS. The study uses secondary data obtained from government publications and official investment reports at the provincial level. Findings indicate that both corporate investment and government expenditure have a statistically significant positive impact on regional revenue in Central Java. The model shows a relatively high adjusted R² value, confirming a strong explanatory power of the independent variables on the dependent variable. Multicollinearity diagnostics show acceptable Variance Inflation Factor (VIF) values, indicating that multicollinearity is not a concern in the model. These results underscore the vital role of both investment and public expenditure in driving fiscal performance at the regional level.

Investment Decisions as a Moderator in Capital Structure, Firm Size, Profitability, and Firm Value Erni Ghuri; Zulfikar Zulfikar
Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE) Vol 7 No 3 (2024): Sharia Economics
Publisher : Universitas KH. Abdul Chalim Mojokerto

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.31538/iijse.v7i3.6806

This research investigates how financial leverage, firm size, and profitability influence firm valuation, with capital allocation choices examined as a moderating variable. Specifically, it seeks to answer whether these financial factors significantly affect firm value and whether investment decision proxies strengthen these relationships. Utilizing a quantitative approach, the study analyzes secondary data from the financial statements of conventional banks listed on the Indonesia Stock Exchange (IDX) between 2020 and 2022. Multiple linear regression assesses direct effects, while moderated regression analysis tests the interaction effects using SPSS software. Financial leverage is measured through the debt-to-equity ratio (DER), firm size by the natural logarithm of total assets (Ln), profitability by return on equity (ROE), capital allocation choices by the price-earnings ratio (PER), and firm valuation by price-to-book value (PBV). Findings reveal that financial leverage and profitability significantly influence firm valuation, while firm size does not. The lack of significance for firm size may reflect that larger banks in Indonesia are not inherently more efficient or value-generating due to structural or operational inefficiencies. Capital allocation choices have a direct, positive effect on firm valuation, but moderate the impact of profitability, rather than leverage or size. This suggests that investors prioritize profitability when making valuation-based investment decisions. These results are consistent with prior studies that highlight the dominant role of profitability in driving firm value, particularly in emerging markets, where size alone does not guarantee performance or market perception.

Analysis of the Influence of Knowledge, Technological Progress, Motivation, and Minimum Capital on Generation Z's Investment Interest in the Capital Market Tia Nur Pangesti; Zulfikar Zulfikar
Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE) Vol 7 No 3 (2024): Sharia Economics
Publisher : Universitas KH. Abdul Chalim Mojokerto

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.31538/iijse.v8i2.7366

Investment is an investment activity that is increasingly in demand by the public, especially generation Z. The number of investors in the Indonesian capital market continues to increase, reaching 13 million based on SID at KSEI, with the addition of more than 863 thousand new investors by 2024. The Financial Services Authority and the Indonesia Stock Exchange are working to increase the number of Investment Galleries to support public interest, especially students. Generation Z dominates the capital market, with 57.04% of individual investors under the age of 30. Generation Z's investment interest is influenced by financial literacy and technological advances that facilitate access to information and investment transactions. Digital technology allows investments to be made efficiently without disrupting main activities. Despite the ease of investing, many investors still fail due to a lack of understanding and clear financial goals. Investment motivation in Indonesia is still low due to the lack of financial literacy. In addition, low minimum capital is a motivating factor for students to start investing, especially in stocks at affordable prices. With the characteristics of generation Z who are tech-savvy and like to try new things, investing in the capital market is a great opportunity for them to get long-term benefits. This study aims to determine and analyze knowledge, technological progress, motivation and minimum capital on generation Z's investment interest in the capital market. This research uses quantitative research methods. The results of this study are knowledge, motivation, minimum capital affect investment interest while technological progress has no effect on investment interest.

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