Quantitative analysis shows the significant effects of zakat and CSR on financial performance in Islamic banks, suggesting important implications for ethical finance.
Key Points
Financial performance improves significantly with zakat contributions, indicating its positive influence on sharia conformity.
Zakat negatively affects profitability metrics, suggesting a complex relationship in financial performance measures.
Data analysis utilized multiple regression techniques on secondary data from Islamic commercial banks for 2018-2022, enhancing reliability and validity of findings across selected banks and time period. Zakat's role requires further exploration for profitability, indicating a nuanced understanding for stakeholders.