Sustainability Reporting Disclosure, Islamic Intellectual Capital, and Maqashid Sharia Performance in Indonesian Islamic Banks: The Moderating Role of Islamic Corporate Governance
DOI:
https://doi.org/10.54471/iqtishoduna.v15i2.3716Keywords:
sustainability reporting disclosure, islamic intellectual capital, islamic corporate governance, maqashid shariaAbstract
Background and research gap – Sharia banking must achieve both financial and Maqashid Sharia performance, driven by sustainability reporting and Islamic intellectual capital, supported by effective Islamic corporate governance implementation.
Purpose – This study examines the impact of sustainability reporting disclosure (SRD) and Islamic intellectual capital (IIC) on maqashid sharia performance (MSP), with Islamic corporate governance (ICG) as a moderating variable.
Design/methodology/approach – Utilizing a quantitative explanatory design, this research analyzes panel data from 12 fully-fledged Islamic commercial banks in Indonesia over the period 2020–2024 (60 bank-year observations). Hypotheses were tested using panel fixed effects regression and Moderated Regression Analysis (MRA). To mitigate endogeneity concerns and dynamic panel bias, a Two-Stage Least Squares (2SLS) regression was executed as a robustness test.
Key Findings – The empirical results reveal that SRD has a statistically insignificant effect on MSP. Conversely, IIC exhibits a significant negative effect (t-statistic = -4,739, p < 0.05), indicating a structural mismatch where intellectual capital investments do not immediately translate into Maqashid-based social and ethical objectives. ICG fails to moderate the SRD–MSP relationship but significantly moderates and positively enhances the influence of IIC on MSP (t-statistic = 2,147, p < 0.05), demonstrating that effective governance aligns intellectual capital allocation with Maqashid Sharia dimensions. Among control variables, bank size positively influences MSP, whereas profitability shows a significant negative effect. To address endogeneity and dynamic panel bias, a 2SLS robustness test was conducted, yielding consistent.
Research limitations/implications – The research is geographically constrained to Indonesian Islamic banks and relies on non-standardized sustainability reporting disclosure metrics.
Originality/value – This paper provides novel empirical evidence by challenging the assumed positive linear outcomes of Islamic intellectual capital, establishing ICG as a crucial moderating mechanism that aligns intellectual capital allocation with Maqashid Sharia dimensions.
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