THE SHARIAH COMPLIANCE WITH AAOIFI GOVERNANCE STANDARDS RELATED SSB INFORMATION: A STUDY ON INDONESIA ISLAMIC BANKS

Abstract

The purpose of this paper to analyze the influence of Shariah Supervisory Board Cross Memberships and Shariah Supervisory Board Qualification toward shariah compliance related SSB information. In addition, this paper also explains the variable firm size as a control variable. The use of control variables so that the influence of SSB on compliance does not depend on other variables. This study reviews the shariah compliance related SSB information as stated in the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) standard, primarily compliance level with AAOIFI standards No 1 and No 5 related to Shariah Supervisory Board (SSB). This paper finds that’s the coefficient estimates variable of SSB Cross membership is positive significant at the 10% level. The coefficient estimates on SSB Qualification is positive significant at the 5% level. Furthermore, we also find that the bank size as a control variable has a significant positive effect at 1% level.