the Financial Reporting Quality: Sharia Compliance in Islamic bank (Indonesia)
Keywords:
Financial Reporting Quality; Sharia Compliance; Modified Audit OpinionAbstract
This study aims to know whether Sharia compliance improves the quality of financial reporting in Islamic banking in Indonesia. This study consists of 11 Islamic banks in Indonesia. The type of data used in this study is secondary data. The data was obtained from annual report of Islamic banking in Indonesia. The quality of financial reporting by discretionary accrual. This study finds that Sharia, ROA, SIZE,SHloss have positive relationship with the quality of financial reporting. LNAge, Big4 and SBBcross has negative relationship with the quality of financial reporting. Based on these findings, Sharia compliance affects the quality of financial reporting. The implications of sharia banking compliance on the quality of financial reports are higher transparency, increased customer trust, and encouraging sustainable economic growth. In addition, this compliance can also reduce legal and reputational risks, which in turn will attract more investment. Thus, sharia banking not only functions as a financial institution, but also as a driver of ethical and social values in society. The limitation of this study is that it only covers 2 periods. It is hoped that further research can add periods and use other methods in measurement.
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