The Moderating Role of Corporate Social Responsibility in Determining Islamic Bank Margin

Yuniorita Indah Handayani (), Isti Fadah (), Elok Sri Utami () and Sumani, ()
Additional contact information
Yuniorita Indah Handayani: Yuniorita Indah Handayani* STIE Mandala Jember Sumatera 118-120 street, Jember Regency INDONESIA +628124984456
Isti Fadah: Faculty of Economic and Business University of Jember Kalimantan street, Jember Regency INDONESIA
Elok Sri Utami: Faculty of Economic and Business University of Jember Kalimantan street, Jember Regency INDONESIA
Sumani,: Faculty of Economic and Business University of Jember Kalimantan street, Jember Regency INDONESIA

Jurnal Ekonomi Malaysia, 2020, vol. 54, issue 1, 97-110

Abstract: The ability to generate profit is the most important factor for a bank. One of the indicators to asses bank profitability is Bank Margin which is influenced by internal and external factors. However, the survival of a bank does not only depend on the profitability, but also depends on its responsibility to the stakeholders including the community. Islamics bank are obliged to distribute some of their profits to support Corporate Social Responsibility (CSR) and disclose those activities in the bank annual report. This study aims to analyze internal factors that determining Islamic Bank Margin in Malaysia. The internal factors include capital, assets quality, management, earning and liquidity. This study further investigates the moderating role of CSR on the relationship between capital, asset quality, management, earning, liquidity and bank margins. The sample used are 10 Malaysian Islamic Banks. The method used is multiple regression. The findings show that 75.8% of Islamics Bank Margin is influenced by capital, asset quality, management, earning and liquidity. Partially, assets quality and earning significantly influence on Islamic Bank Margin, while capital, management and liquidity have no effect on bank margins. In addition, CSR is the potential variable to moderate the influence of capital, asset quality, management, and liquidity on Bank Margins.

Keywords: Bank Margins; Islamic Social Reporting; Islamic banks; corporate social responsibility (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.ukm.my/jem/wp-content/uploads/2021/05/jeko_541-7.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ukm:jlekon:v:54:y:2020:i:1:p:97-110

DOI: 10.17576/JEM-2020-5401-7

Access Statistics for this article

More articles in Jurnal Ekonomi Malaysia from Faculty of Economics and Business, Universiti Kebangsaan Malaysia Contact information at EDIRC.
Bibliographic data for series maintained by Muhammad Asri Abd Ghani ().