Determinants of Islamic Sustainability Reporting Disclosure in Islamic Banking in Indonesia and the Middle East A Literature Study

Ainun Zamilah

Authors

Ainun Zamilah Universitas Islam Negeri Kiai Haji Achmad Siddiq Jember Author

Keywords:

Determinant, Financial Performance, Islamic Governance, Islamic Sustainability Reporting, Literature Review

Abstract

This study investigates the determinants of reporting on the sustainability of Islamic banks in Indonesia and the Middle East by revealing trends, relationships, inconsistencies, and gaps in the literature from 2010 to 2020 through a literature review with a thematic approach to structured literature review. The analysis was conducted by dividing the results of the study into three categories of aspects of determinants: performance (financial performance, company performance, and company size); governance (corporate governance and ownership structure); and external determinants. The results of this study indicate that there is no significant difference in the determinants of the disclosure of sustainability reports between Islamic banks in Indonesia and Islamic banks in the Middle East. In general, from the financial performance and company performance variables, it can be concluded that it has a significant effect on the disclosure of sustainability reporting, based on governance aspects. In corporate governance, only the size of the board of commissioners can be concluded to be determinant in sustainability reporting, while the ownership structure variable is not strong enough to be the determinant of sustainability reporting. Governance, in general it can be concluded that both aggregate and partially have a significant effect on the disclosure of sustainability reports. Little of the literature specifically addresses sustainability; further research is expected to expand the research so that more resources and analysis space are wider and deeper.

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