September 20, 2025Open Access

Determination of Islamic social responsibility disclosure in Indonesian sharia commercial banks

Key Points

Islamic social reporting disclosure is significantly influenced by bank size and financing to deposit ratio, indicating resource visibility matters more than financial performance.
The financing to deposit ratio positively impacts Islamic social reporting, while return on assets and return on equity do not significantly influence disclosure.
The analysis employs regression on static panel data from eight sharia commercial banks during 2019-2023, ensuring a comprehensive view of ISR disclosure factors.
Regulators should promote ISR transparency, especially in large banks, suggesting Islamic banks need a more strategic approach to integrating social responsibility.

Abstract

This study aims to analyze the influence of financial performance, as represented by Return on Assets and Return on Equity, Financing to Deposit Ratio, Islamic Corporate Governance, and bank size, on Islamic Social Reporting disclosure (ISR) in Sharia Commercial Banks in Indonesia. This study employs a regression analysis of static panel data from eight Islamic commercial banks during the 2019-2023 period. The bank size has a significant positive influence on ISR. The FDR variable also showed a positive impact. In contrast, ROA, ROE, and ICG have not been shown to have a significant influence on ISR. These findings suggest that ISR disclosure is driven more by the visibility and availability of resources than by financial performance or formal governance alone. The implications of this study underscore the importance of regulators in promoting ISR transparency, particularly in large banks, as well as the need for Islamic banks to integrate ISR more strategically and comprehensively.

Determination of Islamic social responsibility disclosure in Indonesian sharia commercial banks

Key Points

Abstract

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