The Impact of Zakat on the Financial Performance of Islamic Commercial Banks in Indonesia
Keywords:
ICB, CSR, Financial Performance, ZakatAbstract
A company certainly aims to have good financial performance. One form of good performance is by fulfilling corporate social responsibility (CSR). However, the CSR disclosure used so far in Sharia Commercial Banks (SCB) is considered inappropriate because it does not yet include Sharia indicators. CSR disclosure in Sharia banks will be more appropriate if it uses zakat as a proxy. Therefore, this research aims to determine the impact of CSR projected through zakat contributions on the financial performance of Sharia banks in Indonesia. The financial performance of BUS is measured by Return On Assets (ROA) and Return On Equity (ROE). This research uses unbalanced panel data, which includes the financial reports of Sharia banks in Indonesia registered with the Otoritas Jasa Keuangan (OJK) from 2013 to 2023, with purposive sampling resulting in 30 selected samples. The analysis technique used is multiple linear regression analysis with the Eviews 12 analysis tool. The results of this study indicate that zakat has a positive effect on the financial performance of Sharia Commercial Banks as measured by ROE, but zakat does not affect the financial performance of Sharia Commercial Banks as measured by ROA.
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