JEFMS Journal

ABSTRACT:

Profit Distribution Management is critical for Islamic bank managers to ensure the banks they manage are sustainable. Profit Distribution Management will serve as the foundation for depositors' decision to invest in sharia banks. The study's overarching objective is to ascertain the level of profit distribution management at a sharia commercial bank and the factors that influence it. According to this study, the distinguishing characteristics of a sharia commercial bank that affect profit distribution management are capital adequacy, the percentage of third-party funds, and the age of the bank. While macroeconomic and Sharia Supervisory Board specific factors had no effect on the profit distribution management of a sharia commercial bank. This study made a significant contribution to the Islamic banking manager, Bank Indonesia, the Sharia Financial Accounting Standards Board, and the Islamic banking depositor.

KEYWORDS:

Profit distribution management, determinant factors, sharia commercial bank

REFERENCES:

1) Agus, Defrinal., Yunilma., & Darmayanti, Yeasy. (2014). Factors influencing the management of earnings distribution in Islamic banks in Indonesia for 2009-2012. (5)(1). http://bit.ly/2y8bnfX.

2) Alteza, Muniya. (2017). Analysis of Determinants of Profit Distribution Management for Islamic Commercial Banks for 2013-2015. Li Falah. Journal of Islamic Economics and Business Studies (2) (2):39-55.

3) Clarkson, ME (1995). Distribution of management by Islamic banks: An empirical investigation. The Quarterly Review of Economics and Finance, (52) 3), 333-347. http://bit.ly/2wClVBQ.

4) Farook, Sayd, MK Hasan & G. Clinch. (2012). Profit Distribution Management by Islamic Banks: An Empirical Investigation. Economic and Financial Quarterly Review (52): 333-347.

5) Ghozali, Imam. (2011). Application of Multivariate Analysis with IBM SPSS 19 Program. Semarang: Diponegoro University Publishing Agency.

6) Handayani, E. (2021). Performance analysis of sharia commercial banks in Indonesia before the covid pandemic period ( 2015-2019 ). International Journal Research in Business & Science, 10(2), 228–237.

7) Handayani, E., Tubastuvi, N., & Fitriati, A. (2019). The Determinants of Islamic Commercial Bank Profitability in Indonesia during 2012-2018. 3(5), 225–236.

8) Kartika, Septyana Bella., & Adityawarman. (2012). Analysis of Factors Affecting Profit Distribution Management: Empirical Study of Islamic Commercial Banks in Indonesia for the 2009-2012 Period. Journal of Accounting (1)(1). http://bit.ly/2i0Uf85.

9) Listyorini, WW (2012). Analysis of the influence of camels on the performance of banking companies that go public. Dynamics of Financial Accounting and Banking. (1)(2). http://bit.ly/2wJsWBF.

10) Muhammad & Suwikyo, Dwi. (2009). Islamic Banking Accounting. Yogyakarta: Media Trust.

11) Mulyadi, M. (2011). Quantitative and qualitative research and the fundamental thinking that combines them. Journal of communication and media studies, 15) (1). http://bit.ly/2zDhNnV.

12) Mulyo, GP, & Mutmainah, S. (2012). Factors Affecting Profit Distribution Management in Islamic Banks in Indonesia for the 2008-2011 Period. http://sna.akuntansi.unikal.ac.id/makalah/043-AKSR-04.pdf.

13) Mulyo, Gagat Panggah, and Mutmainah, Siti. (2013). Determinants of Profit Distribution Management of Islamic Banks in Indonesia for the Period 2011-2013. Journal of Islamic Economics, Management and Accounting IMANENSI, (1)(1). http://imanensi.fordebi.or.id/index.php/imanensi/article/view/16.

14) Riduwan., Rusyana, Adun., and Enas. (2011). Easy Ways to Learn SPSS Version 17.0 and the Research Statistics Application. Bandung: Alphabeta.

15) Rinanti, Risna. (2012). Analysis of Factors Affecting Allowance for Earning Assets (PPAP) (Comparative Study of Conventional Banks & Islamic Banks in Indonesia). Journal of Business Strategy (21) (2). http://ejournal.undip.ac.id/index.php/jbs/article/view/14225.

16) Rohmah, Z., Mahsuni, AW, & Junaidi, J. (2017). Factors Affecting Profit Distribution Management in Islamic Banks in Indonesia for the 2012-2015 Period. Journal of Accounting Research, (6) (03). http://bit.ly/2wkYLjO.

17) Rustam, Bambang Rianto. (2013). Risk Management of Islamic Banks in Indonesia. Jakarta: Salemba Empat.

18) Saputra, B., & Muyassaroh. (2015). Factors that affect the profit distribution management in Islamic banks in Indonesia from 2009-2013. Journal of Civil Management Accounting, (1)(1). http://bit.ly/2jqVJJ7.

19) Shintya, N., & Darmawan, A. (2015). Analysis of the factors that affect the Allowance for Earning Assets (PPAP) in Islamic banking in Indonesia. Economic Media, (15) (2). http://bit.ly/2yR3wWm.

20) Ulfah. (2017). Determinants of profit distribution management of Islamic banks in Indonesia. Essay. Yogyakarta State University. http://bit.ly/2yR3wWm.

21) Wafaretta, V., & Rahman, AF (2016). Impact of Bank Characteristics on Profit Distribution Management for Islamic Commercial Banks. Procedia-Social and Behavioral Sciences, 219, 769-776. http://bit.ly/2yt5rgs.

22) Wahyuni, Sri. and Iwan, F. 2013. Analysis of Factors Affecting the Sustainability Ratio of Islamic Banking in Indonesia. Offer. 1st SANCALL Universitas Muhammadiyah Surakarta.

23) Wahyuni, Sri. 2014. Factors Affecting the Sustainability Ratio of Islamic Banking During the Global Financial Crisis. Offer. 2nd ASEAN International Conference on Islamic Finance. IAIN. Sunan Kalijaga.

24) Wahyuni, Sri. and Pujiharto. 2015. Measuring the Performance Efficiency of Islamic Banking in Indonesia with the Stochastic Frontier Model Approach: Testing Economies of Scale. LPPM UMP Research Report.

25) Wahyuni, Sri. and Pujiharto. 2016. Measuring the Social Performance of Islamic Banks and Determining Factors: Implementation of Sharia Enterprise Theory in Islamic Banking in Indonesia. LPPM UMP Research Report.

26) Wahyuni, Sri. and Pujiharto. 2016. Measuring Profit Efficiency of Islamic Banking in Indonesia Using the Stochastic Frontier Approach. Journal of Economics, Business, and Accounting, VENTURA, Vol.15, No.1

27) Wati, Reggi Merdeka. (2016). Factors Affecting Profit Distribution Management in Islamic Banking in Indonesia for the 2012-2014 Period.

28) Ernayani, R., Robiyanto, R., & Sudjinan, S. (2017). Factors Influencing Profit Distribution Management of Sharia Commercial Banks in Indonesia. Journal of Economics, Business & Accountancy Ventura, 20 (2), 187–192. https://doi.org/10.14414/jebav.v20i2.1055

29) Farag, H., Mallin, C., & Ow-Yong, K. (2018). Corporate governance in Islamic banks: New insights for dual board structure and agency relationships. Journal of International Financial Markets, Institutions, and Money, 54, 59–77. https://doi.org/10.1016/j.intfin.2017.08.002

30) Grais, W., & Pellegrini, M. (2006). Corporate Governance and Shariah compliance in Institutions Offering Islamic Financial Services. World Bank Policy Research Working Paper, November, 1–46. http://elibrary.worldbank.org/doi/pdf/10.1596/1813-9450-4052%5Cnhttp://elibrary.worldbank.org/doi/book/10.1596/1813-9450-4052

31) Grassa, R., & Chakroun, R. (2016). Ownership structure, board's characteristics, and corporate governance disclosure in GCC banks: What about Islamic banks? International Journal of Accounting, Auditing and Performance Evaluation, 12 (4), 360–395. https://doi.org/10.1504/IJAAPE.2016.079862

32) Jan, AA, Lai, FW, & Tahir, M. (2021). Developing an Islamic Corporate Governance framework to examine sustainability performance in Islamic Banks and Financial Institutions. Journal of Cleaner Production, 315 (March), 128099. https://doi.org/10.1016/j.jclepro.2021.128099

33) Karim, A. a, & Affif, AZ (2005). Islamic Banking Consumer Behavior in Indonesia: A Qualitative Approach. International Journal of Islamic Finance. , 5 (1), 1–18.

34) Lahrech, N., Lahrech, A., & Boulaksil, Y. (2014). Transparency and performance in Islamic banking: Implications on profit distribution. International Journal of Islamic and Middle Eastern Finance and Management, 7 (1), 61–88. https://doi.org/10.1108/IMEFM-06-2012-0047

35) Miglietta, F., & Forte, G. (2012). A Comparison of Socially Responsible and Islamic Equity Investments. SSRN Electronic Journal, 21 (21). https://doi.org/10.2139/ssrn.1819002

36) Mismiwati, M., Haryadi, H., Arum, EDP, & Lubis, TA (2022). The role of profit management in the mediation of financial performance and transparency towards profit distribution management in sharia commercial banks. International Journal of Research in Business and Social Science (2147-4478), 11 (1), 138–151. https://doi.org/10.20525/ijrbs.v11i1.1541

37) Monnin, P., & Jokipii, T. (2016). The Impact of Banking Sector Stability on the Real Economy Swiss National Bank Working Papers.Empirica,44(2017),295–337. https://www.snb.ch/n/mmr/reference/working_paper_2010_05/source/working_paper_2010_05.en.pdf

38) Najwa, NA, Ramly, Z., & Haron, R. (2019). Board Size, Chief Risk Officer and Risk-taking in Islamic Banks: Role of Shariah Supervisory Board. Journal of Management, 57. https://doi.org/10.17576/pengurusan-2019-57-01

39) Shahzadi, K., Ayub, H., Shabbir, MS, & Yasmind, A. (2021). Factors Affecting Profit Distribution Management of Islamic Banks: Moderating Role of Corporate Governance. Islamic Banking and Finance, 8 (1).

40) Tharu, NK, & Shrestha, YM (2019). The influence of bank size on profitability: An application of statistics. International Journal of Financial, Accounting, and Management, 1 (2), 81–89. https://doi.org/10.35912/ijfam.v1i2.82

41) Wu, MW, & Shen, CH (2013). Corporate social responsibility in the banking industry: Motives and financial performance. Journal of Banking and Finance, 37 (9), 3529–3547. https://doi.org/10.1016/j.jbankfin.2013.04.023

42) Zheng, C., Moudud-Ul-Huq, S., Rahman, MM, & Ashraf, BN (2017). Does the ownership structure matter for banks' capital regulation and risk-taking behavior? Empirical evidence from a developing country. Research in International Business and Finance, 42, 404–421. https://doi.org/10.1016/j.ribaf.2017.07.035