The Impact of Zakat on Financial Performance

Sharia Banks in Indonesia since 1992, or around 26 years ago, are related to performance, which is still fluctuating, as well as a poor reputation and reputation related to customer trust in partnering with Sharia Banks, which is still minimal, as evidenced by the still low market share. If examined more deeply, Sharia banking has good growth potential in Indonesia. The majority of Indonesia's population is Muslim, around 87.18% of the total population of Indonesia. However, only around 5.86%, or around 17 million people from the total population of Indonesia, have Sharia Bank accounts (Financial Services Authority, 2022). The conditions above show several challenges that Sharia Banks must face. Sharia banks must continue to strive to carry out appropriate business strategies when facing the current conditions of Sharia banking. Sharia banks must try to improve their performance and reputation to compete with conventional banks. One of the predictor factors that can improve performance and reputation is the implementation of Good Corporate Governance (Syurmita & Fircarina, 2020). In carrying out business strategies that the company has planned to improve performance, the company needs to have good governance. Good Corporate Governance or corporate governance is a system that regulates and controls companies in running their business to increase success and accountability based on statutory regulations and ethical values (Safii, 2020). Implementing Good Corporate Governance in companies will minimize detrimental actions carried out by managers for personal interests. Therefore, the risks that a manager might pose can be reduced. Such actions are usually carried out by management, namely earnings management, which can be detrimental to many parties, even the company itself. Good corporate governance is the principle that directs and controls the company to achieve a balance between the power and authority of the company in providing accountability to stakeholders ....