Economics and Business
Quarterly Reviews
ISSN 2775-9237 (Online)
Published: 08 August 2019
The Incremental Value of Islamic Social Reporting: Evidence from Companies Listed in Jakarta Islamic Index
Fitri Indriawati
Universitas Mercu Buana, Indonesia
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10.31014/aior.1992.02.03.121
Pages: 714-721
Keywords: Debt to Equity Ratio, Firm Size, Islamic Social Reporting, Return On Asset
Abstract
The purpose of this study is to investigate the value relevance of Islamic social reporting disclosures in influencing the firm value. Islamic Social Reporting (ISR) is a Corporate Social Responsibility (CSR) reporting model for sharia-based institutions. Indonesia has not required ISR as a mandatory disclosure to sharia-based companies. This study was designed using causal research and analysed using multiple regression analysis. The sample of this research is companies listed in the Jakarta Islamic Index (JII) from 2014–2017. The result shows while ISR is still voluntary disclosure in Indonesia, and there are no standards for governing implementation, ISR does have incremental value in affecting firm value. The implications are significant for sharia-based companies in implementing ISR.
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