THE DETERMINANTS OF NON-PERFORMING FINANCING IN INDONESIAN ISLAMIC BANKS: DO CORPORATE GOVERNANCE MATTER?
Abstract
Purpose– This paper aims to examine the relationship between corporate governance and non-performing financing of Indonesian Islamic banks Research methodology – This study employs panel data with self-assessment index to measure good governance. Findings – The results revealed that good corporate governance self-assessment index affect non-performing financing of Indonesian Islamic banks positively Research limitations – The article analyses Indonesian Islamic banks Islamic banks only and until 2020 only because of Islamic bank’smerger that interferes the research. Comparison with conventional banks could also have been done Practical implications – the effectiveness of corporate governance aligns with the agency conflict that will reduce the non-performing financing. Regulators should give more emphasis on effective implementation of good governance especially on the method; Originality/Value – the study adds to the existing literature of corporate governance which is measured by composite value of good corporate governance self-assessment index.on non-performing financing in Indonesian Islamic banks by using the dynamic panel approach
Keyword : (3–5):Corporate Governance, Indonesia, Islamic Banks, Non-Performing Financing, Panel Data
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