AN ANALYSIS OF ISLAMIC CORPORATE GOVERNANCE IMPLEMENTATION ON THE PERFORMANCE OF SHARIA COMMERCIAL BANKS IN INDONESIA BY USING INDEX SHARIA MAQASHID APPROACH AND RISK AS AN INTERVENING VARIABLE

Abstract

The purpose of this study is to analyze the influence of implementation of Islamic Corporate Governance on the performance of Sharia Commercial Bank in Indonesia using approach of Maqashid Syariah with risk as intervening variable. Islamic Corporate Governance is a process and structure that is used to direct and manage the business and corporate accountability with the main purpose of enhancing the value of shares in the long term by still paying attention to the interests of other stakeholders who in the perspective of Islam always associate all the concepts and behavior in business governance with regard - transcendental things and faith. Data analysis method used in this research is path analysis (Path Analysis). Stages of testing performed include Classical Assumption Test then conducted path analysis.

The results show that the Islamic Corporate Governance (ICG) can directly influence the performance/Maqashid Syariah Index (MSI) and can influence indirectly from Islamic Corporate Governance (ICG) to Non Performing Finance (NPF) intervening variable to performance / Maqashid Syariah Index (MSI) at Sharia Commercial Bank in Indonesia. Islamic Corporate Governance (ICG) has an effect on the risk to Sharia Commercial Bank in Indonesia. Risk or Non Performing Finance (NPF) has an effect on performance with indicator of Maqashid Syariah Index at Syariah Commercial Bank in Indonesia.

Key Word       : Islamic Corporate Governance, Maqashid Syariah Index, Performance