PERFORMANCE INDEX AND OPERATING RATIO: EFFECTS ISLAMIC ON SHARIA PROFITABILITY IN INDONESIA

Ajeng Tita Nawangsari (Universitas Islam Negeri Sunan Ampel Surabaya)
Mochammad Ilyas Junjunan (Universitas Islam Negeri Sunan Ampel Surabaya)
Zakiyatul Fakhiroh (Universitas Islam Negeri Sunan Ampel Surabaya)
Ana Toni Roby Candra Yudha (Universitas Islam Negeri Sunan Ampel Surabaya)
Achmad Room Fitrianto (Universitas Islam Negeri Sunan Ampel Surabaya)

Jurnal Riset Akuntansi Kontemporer
Vol 14 No 2 (2022): October Edition

This study aimed to to ascertain the impact of Islamic Performance Index and Operating Efficiency Ratio on the financial performance of Islamic banking for 2016-2020 period. Purposive sampling was used as the empirical methodology. Data analysis was done by using Eviews 12 software and moderated regression analysis (MRA). The findings indicated that while the Islamic income ratio did not have impact on profitability, the profit sharing ratio and operating efficiency ratio had a significant detrimental impact on it. The findings also showed that intellectual capital can influence profitability by reducing the impact of operating efficiency ratio and profit sharing ratio, but it cannot affect profitability by reducing the impact of Islamic income ratio.