Title: The Influence of the Characteristics of the Sharia Supervisory Board and Audit Committee on Islamic Social Reporting Disclosure

Author: Astuti Dola Bastina

Affiliations : Masters Program in Accounting, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia

Publisher: Universitas Airlangga

Abstract

This research aims to examine the influence of the characteristics of the sharia supervisory board, the size of the audit committee and the frequency of audit committee meetings on Islamic Social Reporting (ISR) disclosures in sharia banking companies in Indonesia and Malaysia for the 2014-2018 period. The number of observations used was 140 observations consisting of 28 companies during the 2014-2018 period. Hypothesis testing uses a multiple linear regression model with Ordinary Least Square (OLS) estimation. The results of the F test show that the characteristics of the sharia supervisory board, the size of the audit committee and the frequency of audit committee meetings significantly influence the disclosure of Islamic Social Reporting (ISR). The Adjusted R-Square value is 21.48%, indicating that there are other variables that influence the model by 78.52%. The results of this research indicate that the characteristics of the sharia supervisory board, size and frequency of audit committee meetings have a positive and significant effect on Islamic Social Reporting disclosure. The role of the characteristics of the sharia supervisory board, which includes the number of members, cross-membership, level of education, and expertise of the members of the sharia supervisory board, influences the disclosure of Islamic Social Reporting, playing an important role in determining the disclosure policy of Islamic Social Reporting. Based on this, companies that want to increase Islamic Social Reporting disclosure must also increase the number of audit committee members and the frequency of meetings held per year by audit committee members.

Keywords: Characteristics of Sharia Supervisory Board, Islamic Social Reporting, Audit Committee Size, Islamic Banks.

Sources: http://repository.unair.ac.id/97854/