Search results

1 – 1 of 1
Per page
102050
Citations:
Loading...
Access Restricted. View access options
Article
Publication date: 16 September 2022

Mutamimah Mutamimah and Pungky Lela Saputri

This study aims to analyse the role of corporate governance in moderating the effects of murabahah, mudharabah and musyarakah financing on the financing risk and financial…

1765

Abstract

Purpose

This study aims to analyse the role of corporate governance in moderating the effects of murabahah, mudharabah and musyarakah financing on the financing risk and financial performance of Islamic banks.

Design/methodology/approach

The population for this study covered Islamic banks in Indonesia. Purposive sampling was performed, and statistical analysis was conducted using moderating regression analysis by selecting among the common, fixed and random effects models.

Findings

The results showed that murabahah financing has a positive effect on financing risk; conversely, mudharabah financing has a negative effect on financing risk. By contrast, musyarakah financing has no effect on financing risk. However, corporate governance weakens the influence of murabahah financing on financing risk and increases that of mudharabah financing on financing risk. Further, corporate governance cannot weaken the effect of musyarakah financing on financing risk. Additionally, financing risk reduces financial performance.

Research limitations/implications

This research focusses only on Indonesian Islamic banks; future research should be extended to Islamic insurance and Islamic micro finance.

Practical implications

The results serve as input for government regulations on corporate governance in Islamic bank financing and encourage Islamic banks to diversify their financing proportionally.

Social implications

This research can be used for optimising Islamic bank financing to empower the realty sector and reduce poverty.

Originality/value

Research on the role of corporate governance as a moderating variable in reducing financing risk in Islamic banks remains limited.

Details

Journal of Islamic Accounting and Business Research, vol. 14 no. 3
Type: Research Article
ISSN: 1759-0817

Keywords

1 – 1 of 1
Per page
102050