APAKAH PENDIDIKAN DIREKSI DAPAT MENINGKATKAN KINERJA BANK SYARIAH?

Ayatullah Al Quddus, Yudhi Kuncoro Aji, Samsul Rosadi, Helti Nur Asisyah

Abstract


This research aims to investigate whether the education level of the board of directors has a significant impact on the performance of Islamic banks, measured by Return on Assets (ROA). The method used in this study is regression analysis, which allows for the measurement of the influence of independent variables on the dependent variable. Data from Islamic banks, using panel data from 2010 to 2020, were analyzed, including the education level and economic background of the directors. The findings of this research can provide insights into whether the education of the board of directors has a significant positive impact on the performance of Islamic banks or not. The results of this study are expected to offer a clearer perspective on the importance of the education of the board of directors in enhancing the performance of Islamic banks. The research results indicate that the education level, measured by (bachelor's, master's, and doctoral degrees), and the economic education background of the board of directors have a significant negative impact on ROA. Therefore, Islamic banks may consider improving the education level and economic backgrounds of their directors to enhance their performance

Full Text:

PDF

References


Abdelaziz, H., Rim, B., & Helmi, H. (2022). The interactional relationships between credit risk, liquidity risk and bank profitability in MENA region. Global Business Review, 23(3), 561–583.

Akpan, E. O., & Amran, N. A. (2014). Board characteristics and company performance: Evidence from Nigeria. Journal of Finance and Accounting, 2(3), 81–89.

Arifin, R., Rosadi, S., Nugroho, A., & Wahyuningsih, T. (2021b). Characteristics of the Sharia Supervisory Board, Sharia Company Size, Zakah, and Islamic Social Reporting on Sharia Banks in Indonesia. Falah: Jurnal Ekonomi Syariah, 6(2), 15–28.

Becker, G. S. (2009). Human capital: A theoretical and empirical analysis, with special reference to education. University of Chicago press.

Berger, A. N., Kick, T., & Schaeck, K. (2014). Executive board composition and bank risk taking. Journal of Corporate Finance, 28, 48–65. https://doi.org/https://doi.org/10.1016/j.jcorpfin.2013.11.006

Boadi, I., & Osarfo, D. (2019). Diversity and return: the impact of diversity of board members’ education on performance. Corporate Governance: The International Journal of Business in Society, 19(4), 824–842.

Boshnak, H. A., Alsharif, M., & Alharthi, M. (2023). Corporate governance mechanisms and firm performance in Saudi Arabia before and during the COVID-19 outbreak. Cogent Business & Management, 10(1), 2195990. https://doi.org/10.1080/23311975.2023.2195990

Bukair, A. A., & Rahman, A. A. (2015). Bank performance and board of directors attributes by Islamic banks. International Journal of Islamic and Middle Eastern Finance and Management, 8(3), 291–309.

D’Amato, A., & Gallo, A. (2019). Bank institutional setting and risk-taking: the missing role of directors’ education and turnover. Corporate Governance: The International Journal of Business in Society, 19(4), 774–805. https://doi.org/10.1108/CG-01-2019-0013

Darmadi, S. (2013). Board members’ education and firm performance: evidence from a developing economy. International Journal of Commerce and Management, 23(2), 113–135. https://doi.org/10.1108/10569211311324911

Hakimi, A., Rachdi, H., Ben Selma Mokni, R., & Hssini, H. (2018). Do board characteristics affect bank performance? Evidence from the Bahrain Islamic banks. Journal of Islamic Accounting and Business Research, 9(2), 251–272. https://doi.org/10.1108/JIABR-06-2015-0029

Hambrick, D. C., & Mason, P. A. (1984). Upper echelons: The organization as a reflection of its top managers. Academy of Management Review, 9(2), 193–206.

Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360.

Khan, I., Khan, M., & Tahir, M. (2017). Performance comparison of Islamic and conventional banks: empirical evidence from Pakistan. International Journal of Islamic and Middle Eastern Finance and Management, 10(3), 419–433. https://doi.org/10.1108/IMEFM-05-2016-0077

King, T., Srivastav, A., & Williams, J. (2016). What’s in an education? Implications of CEO education for bank performance. Journal of Corporate Finance, 37, 287–308. https://doi.org/https://doi.org/10.1016/j.jcorpfin.2016.01.003

Kusumastuti, S., Supatmi, S., & Sastra, P. (2007). Pengaruh board diversity terhadap nilai perusahaan dalam perspektif corporate governance. Jurnal Akuntansi Dan Keuangan, 9(2), 88–98.

Pangestu, S. (2016). EDUCATION VERSUS EXPERIENCE: WHICH MATTERS MORE FOR INDONESIAN BANK DIRECTORS? Jurnal Manajemen, 13(2), 149–157.

Ponnu, C. H., & Ramthandin, S. (2008). Governance and Performance. Journal of Law and Governance, 3(1), 37–54.

Saidu, S. (2019). CEO characteristics and firm performance: focus on origin, education and ownership. Journal of Global Entrepreneurship Research, 9(1), 29.

Siciliano, J. I. (1996). The relationship of board member diversity to organizational performance. Journal of Business Ethics, 15, 1313–1320.

Ujunwa, A. (2012). Board characteristics and the financial performance of Nigerian quoted firms. Corporate Governance: The International Journal of Business in Society, 12(5), 656–674.

Widarni, E. L., & Bawono, S. (2020). The Basic Of Human Resource Management Book 1. BookRix.

Wijayanti, R., Diyanty, V., & Laela, S. F. (2020). Education strategy misfit, board effectiveness and Indonesian Islamic bank performance. Journal of Islamic Accounting and Business Research, 11(4), 929–944. https://doi.org/10.1108/JIABR-04-2017-0052


Refbacks

  • There are currently no refbacks.


 

 

 

 

 

 

 

Editorial Office:

Universitas PGRI Madiun

Kampus 3 Lantai 2

Fakultas Ekonomi dan Bisnis

Jl. Auri no. 14-16 Madiun