Does financial performance mediate the effect of good corporate governance on Indonesian Sukuk rating ?

Other Title(s)

هل يعد الأداء المالي للشركات وسيطا مؤثرا في الحوكمة الجيدة لتصنيف الصكوك الإندونيسية ؟

Joint Authors

Sulistiani, Dwi
Tjahjadi, Bambang

Source

Journal of King Abdulaziz University : Islamic Economics

Issue

Vol. 35, Issue 2 (31 Jul. 2022), pp.96-113, 18 p.

Publisher

King Abdulaziz University Scientific Publishing Center

Publication Date

2022-07-31

Country of Publication

Saudi Arabia

No. of Pages

18

Main Subjects

Business Administration
Financial and Accounting Sciences

Abstract EN

Ṣukūk is one of the products of Islamic financial institutions IFIS), so the rating of such instruments should be considered.

This study aims to provide empirical evidence of the influence of Good Corporate Governance on Ṣukūk rating, with financial performance as a mediating variable.

Multiple regression, ordinal logistic regression and Sobel test were used to test the Assumptions on 222 Ṣukūk, which were listed on the Indonesia Stock Exchange as of December 31st, 2020.

The results show that the supervisory board's size, independence, experience, and the audit committee's size and experience directly affect the Ṣukūk rating.

Financial performance has also been shown to have a direct influence on Ṣukūk rating, which in turn can mediate the effect of the three elements of the Good Corporate Governance supervisory function on Ṣukūk rating, namely: the size of supervisory boards, the independence and the number of Sharīʿah supervisory boards.

It is therefore important for companies to pay due attention to the Good Corporate Governance, especially with regard to the supervisory function and financial performance to support Ṣukūk rating.

This study confirms that the existence of a Sharīʿah supervisory board can support the achievement of financial performance and Ṣukūk rating in IFIs.

American Psychological Association (APA)

Sulistiani, Dwi& Tjahjadi, Bambang. 2022. Does financial performance mediate the effect of good corporate governance on Indonesian Sukuk rating ?. Journal of King Abdulaziz University : Islamic Economics،Vol. 35, no. 2, pp.96-113.
https://search.emarefa.net/detail/BIM-1408382

Modern Language Association (MLA)

Sulistiani, Dwi& Tjahjadi, Bambang. Does financial performance mediate the effect of good corporate governance on Indonesian Sukuk rating ?. Journal of King Abdulaziz University : Islamic Economics Vol. 35, no. 2 (Jul. 2022), pp.96-113.
https://search.emarefa.net/detail/BIM-1408382

American Medical Association (AMA)

Sulistiani, Dwi& Tjahjadi, Bambang. Does financial performance mediate the effect of good corporate governance on Indonesian Sukuk rating ?. Journal of King Abdulaziz University : Islamic Economics. 2022. Vol. 35, no. 2, pp.96-113.
https://search.emarefa.net/detail/BIM-1408382

Data Type

Journal Articles

Language

English

Notes

Includes bibliographical references : p. 109-112

Record ID

BIM-1408382