Determinants of Maqasid Shariah Performance in Islamic Banks: Evidence from Southeast Asia

Purpose – This study aims to analyse the effect of Islamic Social Reporting (ISR), Islamic Corporate Governance (ICG), Intellectual Capital (IC), and risk-taking—proxied by Non-Performing Financing (NPF) and Z-Score—on the Maqasid Shariah Index in Islamic Commercial Banks. Design/Methodology/Approach – The study employs a quantitative research design using secondary data obtained from the financial statements of Islamic Commercial Banks in Indonesia for the 2018–2023 period. A purposive sampling technique was applied, resulting in a sample of 15 banks. Data were analysed using panel data analysis to examine the relationships between ISR, ICG, IC, risk-taking variables, and the Maqasid Shariah Index. Findings – The results show that Islamic Corporate Governance has a positive and significant effect on the Maqasid Shariah Index. Meanwhile, risk-taking measured by Z-Score has a negative impact on the Maqasid Shariah Index. Islamic Social Reporting, Intellectual Capital, and risk-taking measured by Non-Performing Financing do not demonstrate significant relationships. Originality/Value – This study contributes to the literature by integrating governance, social disclosure, intellectual capital, and risk-taking dimensions within the framework of Maqasid Shariah performance measurement in Islamic banking. Research Limitations/Implications – The study is limited to Islamic Commercial Banks and covers the 2018–2023 period, which may restrict the generalisability of findings to other Islamic financial institutions or broader time horizons. Future research may expand the sample scope and incorporate additional explanatory variables. Practical Implications – The findings provide insights for Islamic bank management, regulators, and policymakers in strengthening governance practices to improve Maqasid Shariah performance while maintaining prudent risk management.