Analysis of the Influence of Sharia Business Risk on the Financial Performance of Sharia Banking with Islamic Corporate Governance as a Moderating Variable

Anika Anggini (Accounting Study Program, Faculty of Economics and Business, Universitas Negeri Semarang, Semarang, Indonesia.)
Agus Wahyudin (Accounting Study Program, Faculty of Economics and Business, Universitas Negeri Semarang, Semarang, Indonesia.)
Nadia Faiza Az Zahra (Islamic Economics and Finance Study Program, Faculty of Economics and Business, Universitas Negeri Semarang, Semarang, Indonesia)

Islamic Economics and Finance Journal
Vol. 1 No. 1 (2025)

This study aims to examine the impact of credit risk (NPF), liquidity risk (FDR), and capital adequacy risk (CAR) on the financial performance of Islamic banks (ROA), with Islamic Corporate Governance (ICG) as a moderating variable. The research data consists of 12 units of analysis, focusing on Islamic commercial banks registered with the Financial Services Authority (OJK) of the Republic of Indonesia for the period 2016-2020. The data were analyzed using Moderate Regression Analysis (MRA) with IBM SPSS 26 as the tool. The study's results indicate that credit risk (NPF) does not have a positive and significant effect on the financial performance of Islamic banks (ROA). In contrast, liquidity risk (FDR) and capital adequacy risk (CAR) do not have a positive effect but has a significant impact on the financial performance of Islamic banks (ROA). Islamic Corporate Governance (IKI) does not significantly and positively moderate the effect of credit risk on the economic performance of Islamic banks. However, Islamic Corporate Governance can moderate the impact of liquidity risk and capital adequacy risk on the financial performance of Islamic banks positively and significantly.