Jurnal Ekonomi & Keuangan Islam

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ISSN / EISSN : 2088-9968 / 2614-6908
Total articles ≅ 61
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Bayu Arie Fianto, Charissa Kezia Rahmawati, Indri Supriani
Jurnal Ekonomi & Keuangan Islam, Volume 7, pp 59-76; doi:10.20885/jeki.vol7.iss1.art5

Abstract:
Purpose – This study investigates the influential factors of mobile banking service quality dimension (enjoyment, security, ease, design, and application system) of Indonesian Islamic banks toward customer satisfaction.Methodology – This study uses 100 respondents who are Islamic mobile banking users in Indonesia and applies the Partial Least Square for Structural Equation Modeling (PLS-SEM) approach.Findings – This study reveals that the enjoyment, security, design, and application system of Islamic mobile banks significantly impact customer satisfaction. This study suggests that Islamic banks should pay more attention to increasing their mobile banking application systems, which is the most crucial factor influencing customer satisfaction.Research limitations – This study is limited to the sample of five top Islamic banks’ customers in Indonesia with 100 respondents. Thus, the result of this study cannot be generalized to other countries.Practical implications – The findings offer valuable insights into Islamic banks about improving their mobile banking services’ quality to gain more satisfied customers, which benefited their financial and non-financial performances.Originality – This study specifically involved users of Islamic mobile banking from five Islamic banks, received the Top Brand Award in 2019. Therefore, this study provides significant guidelines for the rest of the Islamic banks in Indonesia to improve their customer satisfaction using mobile banking by referring to the Top 5 Brand Award.
Alex Fahrur Riza
Jurnal Ekonomi & Keuangan Islam, Volume 7, pp 1-16; doi:10.20885/jeki.vol7.iss1.art1

Abstract:
Purpose – This research aims to examine the driving factors for the adoption of digital banking of Islamic banks during the COVID-19 pandemic, to explore the development of specific UTAUT2 model for Islamic financial technology, and to investigate factors that need to be improved in digital banking services of Islamic banks based on customer perspectives.Methodology – This research is divided into three. The first study is an empirical testing of UTAUT2 model modified by adding trust and satisfaction variables. The second study is an exploratory study of potential construct for the development of UTAUT model in Islamic Financial Technology. Third, it is an exploratory study aiming to identify problems and to search for policy advice to improve digital banking service of Islamic banks. This research used self-administered survey that involved 845 respondents from several cities in Indonesia. Open and closed question design was used to obtain complementary data. After that, the data were analyzed using SEM-PLS 7.0 and SPSS 23.Findings – The results of this study shows that people have trust, acceptance, and satisfaction on the digital banking service of Islamic banking technology. There are seven hypotheses in this study supported empirically. There are 20 factors that became the main reasons of customers to use the digital banking service of Islamic banking technology and 32 factors that needed to be improved by Islamic banks based on the customers’ perspective. After that, the researcher grouped them into seven policy advices for digital banking service of Islamic banking technology, where these factors can be taken into consideration to improve the competitiveness of the Islamic Finance Industry in Indonesia.Originality – In addition to testing and modifying the UTAUT2 model during the COVID-19 pandemic, this study also explores the possibility of new variables arising from customers’ perception, where the data will be used to submit new variables/models that are more specific to the acceptance of Islamic financial technology. Furthermore, this study also aims to explore several obstacles in the digital banking service of Islamic banking technology.
M. Fikri Himmawan, Novian Abdi Firdausi
Jurnal Ekonomi & Keuangan Islam, Volume 7, pp 17-30; doi:10.20885/jeki.vol7.iss1.art2

Abstract:
Purpose – This study aims to assess the efficiency and stability of Indonesia Islamic Commercial Banks, and then the results are used as a projection in the Covid-19 period. It uses the sample from 14 Islamic Commercial Banks in Indonesia and its quarterly data from 2017 to 2020.Methodology – The DEA method analyses VRS and CRS scale using output orientation. The Panel ARDL also uses two models from the specifications in DEA, with the inputs as independent variables and the outputs as dependent variables.Findings – The result of DEA is visualized in four quadrants from each CRS and VRS model. Respectively in each model, 1 and 5 banks are highly efficient and stable, 5 and 2 banks have high efficiency but low stability, 4 and 2 banks have low efficiency but high stability, 4 and 5 banks have low efficiency and stability. In the Panel ARDL, third party fund, operational expenses, and total financing have significant and stable long-run effect in both models. In the short-run, only operational expenses significantly affect operational earnings, whereas only total financing significantly affects total assets.Practical implications – Banks may use strategies such as absorbing workforces as marketing representatives, utilizing cooperative agreements, crowdfunding, improving banking technology, creating provisions on expected credit loss, and deferring profit.Research limitations – The limitation of this study is the small sample size because only 14 Islamic commercial banks are used as the sample, without considering the Islamic business units of the conventional banks so the predictive strength of the result only constrained in the Islamic commercial banks.Originality – The study uses two different methods in assessing Islamic Commercial Banks especially in the Covid-19 period, hence adding insights on Islamic Commercial Banks in the pandemic period and further contributes to the Islamic banking field of study.
Sulaeman Sulaeman
Jurnal Ekonomi & Keuangan Islam, Volume 7, pp 31-44; doi:10.20885/jeki.vol7.iss1.art3

Abstract:
Purpose – The research paper aims to test empirically the behavioral intention of crowdfunders to use the Islamic crowdfunding platform model based on the theory of the Technology Acceptance Model (TAM).Methodology – The study used primary data that are collected by using the online survey questionnaires and then the analysis is conducted using partial least squares (PLS).Findings – The empirical evidence shows that the perceived usefulness (PU) has a significant positive impact on the behavioral intention (BI) of crowdfunders to use Islamic crowdfunding platform. Furthermore, the perceived ease of use (PEOU) also has a significant and positive relationship as well as direct effect with perceived usefulness (PU) of crowdfunders to use the online platforms. Meanwhile, that perceived ease of use (PEOU) has an insignificant relationship with the behavioral intention (BI) of crowdfunders to use the Islamic crowdfunding platform during the Covid-19 pandemic in Indonesia. Practical implications – The present study has implications for Islamic FinTech companies to provide investment platforms for crowdfunders and financial services for micro small and medium-sized enterprises (MSMEs) during the pandemic of Covid-19.Originality – The finding of this study will contribute to the existing literature in the areas of Islamic FinTech especially on the factors influencing behavioral intentions to use the Islamic crowdfunding platform in times of Covid-19 in Indonesia.
Rifqi Muhammad, Muhammad Aldino Mangawing, Selfira Salsabilla
Jurnal Ekonomi & Keuangan Islam, Volume 7, pp 77-91; doi:10.20885/jeki.vol7.iss1.art6

Abstract:
Purpose - This study aims to analyze the effect of intellectual capital, independent directors, academic directors, and sharia supervisory boards on the financial performance of Islamic banks. The selection of samples observation based on the database of Best Islamic Financial Institutions Award, includes Afghanistan, Algeria, Bahrain, Bangladesh, Brunei Darussalam, Egypt, Indonesia, Jordan, Kazakhstan, Kuwait, Lebanon, Malaysia, Maroko, Nigeria, Oman, Pakistan, Palestine, Qatar, Saudi Arabia, Singapore, South Africa, Sri Lanka, Thailand, Tunisia, Turkey, and Uni Emirate Arab. Methodology - This study uses a sample of 20 Islamic banks in several countries which received the "Best Islamic Financial Institutions Award 2018" by Global Finance Magazine and has published financial reports for the period of 2013-2017. This study adopted panel regression analysis and utilized the Random Effect Model.Findings - The results of the study prove that intellectual capital has a positive effect on financial performance. While independent directors, academic directors, and the Sharia Supervisory Board (SSB) have no effect on the financial performance of Islamic banking companies. These results indicate that intellectual capital is a force for Islamic banking to increase company value through financial performance. While the factors related to corporate governance tend to reduce performance due to several limitations for management in carrying out its operational activities.Research limitations – this study has a limitation in using Islamic banking data from various countries with backgrounds that are certainly different from one another which might be bias. Practical implications – This study suggest that management needs to allocate its resources to provide guidance and development of human resources through regular training in the field of fiqh muamalah, contemporary Islamic banking products and services, effective business communication, as well as extensive market knowledge to anticipate the competition in ways that are in accordance with the principles of sharia.Originality – This research fills a research gap in investigating the nexus of intellectual capital and corporate governance mechanism on Islamic banking performance which has not been discussed in previous papers, particularly using Islamic banking in several countries that are committed to develop the Islamic financial industry.
Agus Widarjono, Ari Rudatin
Jurnal Ekonomi & Keuangan Islam, Volume 7, pp 45-58; doi:10.20885/jeki.vol7.iss1.art4

Abstract:
Purpose – This study empirically analyzes the effect of the financing diversification with some control variables including both bank-specific variables such as bank's size, CAR, efficiency and the macroeconomic variables such as the inflation and exchange rate, on the Islamic bank's non-performing financing (NPF).Methodology – The aggregate Islamic bank data encompassing Islamic commercial banks and Islamic business units are used. The Autoregressive Distributed Lag Model (ARDL) is employed using the monthly data covering January 2011 to December 2019.Findings – The cointegration test indicates that the long-run relationship among variables being studied exists. Our results document that higher concentrated financing generates high NPF. Higher asset significantly contributes to reducing NPF. In addition, higher operating efficiency can reduce NPF. The instability of the exchange rate also generates the high NPF.Research limitations – This study employs aggregate data but applying them may conceal for individual Islamic bank.Practical implications – Our results suggest that Islamic banks must lessen the high concentrated financing by optimizing both PLS and non-PLS contracts to reduce Islamic banks' financing risk.Originality – Our study includes financing diversification to examine Islamic bank's financing risk. The existing empirical studies, to the best of our knowledge, have not addressed the impact of financing diversification on financing risk.
Syifa Rahmatika, Muamar Nur Kholid
Jurnal Ekonomi & Keuangan Islam, Volume 7, pp 92-104; doi:10.20885/jeki.vol7.iss1.art7

Abstract:
Purpose – This research aims to investigate the effect of dividend payment, cash conversion cycle, corporate social responsibility (CSR) disclosure, and corporate governance, which are integrated with the independence and size of the board of commissioners, on cash holdings in the banking industry in Indonesia, both in the conventional and Islamic banks.Methodology – Samples in this research were selected using the purposive sampling technique with the criteria of conventional banks registered in the Indonesia Stock Exchange (ISE) and Islamic banks registered in the Financial Services Authority (FSA) that released annual reports and financial reports during 2014-2019. There were 17 conventional banks and 11 Islamic banks met the criteria. Data were analyzed using multiple linear regression through Statistical Product and Service Solutions (SPSS) software.Findings – This research reveals that the effect of CSR disclosure and size of the board of commissioners on cash holdings shows is different between Islamic and conventional banks. Meanwhile, other variables used in this research have no significant effect on cash holding value, both in conventional and Islamic banks.Research limitations – Related to the samples of conventional banks, this research only investigates the ones registered in the ISE, not all conventional banks in Indonesia.Originality – This research provides empirical data related to the determinants of cash holdings in Islamic and conventional banks, which was rarely investigated in the previous research. Moreover, this research also uses the most updated data, Islamic and conventional banks during 2014-2019
Indri Supriani, Bayu Arie Fianto
Jurnal Ekonomi & Keuangan Islam, Volume 6, pp 91-105; doi:10.20885/jeki.vol6.iss2.art2

Abstract:
Purpose­­­ – This study investigates the driven factors of Foreign Direct Investment (FDI) inflow in selected OIC member countries. The selection of samples observation based on the top 10 hosts of inward FDI flows countries, includes the United Arab Emirates (UAE), Morocco, Indonesia, Turkey, Iran, Egypt, Bangladesh, Kazakhstan, Oman, and Malaysia.Methodology – The data for this study are obtained from World Bank and United Nations Development Programme (UNDP) database for the period 2001-2018. This study adopted panel regression analyses and utilized the Random Effect Model.Findings – This study reveals that GDP and trade openness were positive and significantly plays a vital role in driving the FDI inflow. Whereas, the exchange rate, inflation, and human development index did not have a significant impact on FDI inflow in the top 10 hosts of inward FDI flows countries.Research limitation – The main limitation of this research is the lack of a variable that represents the Islamicity index, which can differentiate the driven factors of FDI in Muslim and non-Muslim organization countries.Practical implication – This study suggests that members of OIC countries should provide a conducive investment environment which is represented by higher GDP growth and engage in various international trade agreements because those factors have higher possibilities in impacting the FDI inflow. Moreover, the rules which describe the investment priority amongst the member of OIC countries must be ratified immediately to decrease the percentage of the FDI inflows goes to non-OIC members.Originality – This study has advanced the knowledge by examining the driven factors of FDI in the specifically selected members of OIC countries, which based on the highest FDI inward. Thus, this study provides significant insights for policymakers for the rest of the member OIC countries to attract FDI inflows referring to the top 10 hosts of inward FDI flows countries.
Rahmatina A Kasri, Chairilisa Azzahra
Jurnal Ekonomi & Keuangan Islam, Volume 6, pp 149-164; doi:10.20885/jeki.vol6.iss2.art6

Abstract:
Purpose – Albeit Islamic banks are often considered more stable than conventional banks, empirical evidence to support the stability view is relatively scanty. This study, therefore, mainly aims to investigate whether Islamic banks are more stable than conventional banks in Indonesia. To enrich and support the analysis, it will also compare the factors influencing the stability of Islamic banks and conventional banks in the country.Methodology – This paper employs a dynamic panel data model using the system-GMM (General Method of Moment) estimator. The data used are quarterly data from 83 conventional banks and 11 Islamic banks in Indonesia during September 2015-June 2019 period. Findings – The study did not find any significant difference in the stability of conventional and Islamic banks. This result is presumably influenced by the small size and small market share of Islamic banks, as well as many similarities between the two types of banking systems. Furthermore, the stability of the conventional bank in Indonesia is more influenced by macroeconomic factors including interest rate, exchange rate and financial inclusions, meanwhile the stability of Islamic banks is more influenced by the banks’ specific factors such as financing growth, efficiency and risk management factors.Research limitations – The data used in the study is limited to the period from September 2015 to June 2019. The variables utilized are also limited to those taken from publicly available financial statements.Originality – This paper provides additional empirical evidence regarding Islamic banking stability in Indonesia by using the latest data. While theoretically Islamic banks are expected to be more stable than conventional banks, this study did not find strong support for the case of Indonesia during the period of observation.
Khairil Faizal Khairi, Nur Hidayah Laili, Aimi Fadzirul Kamarubahrin
Jurnal Ekonomi & Keuangan Islam, Volume 6, pp 106-118; doi:10.20885/jeki.vol6.iss2.art3

Abstract:
Purpose – The purpose of this paper is to determine the factors influencing Malaysian consumer toward intention to purchase Takaful scheme for mental health disorders.Design/methodology – This paper adopts a quantitative approach by using an extended Theory of Reasoned Action (TRA) model. A pilot study with the total of 60 questionnaires were obtained from online survey to examine the significance relationship using multiple regression analysis.Findings – The result from this study portrays that subjective norm are strong predictors of a Malaysian consumer intention to purchase Takaful scheme for mental health disorders. Moreover, factors such as awareness, perception and attitude have positive and significant impacts on consumer intention to purchase takaful scheme for mental health disorders in Malaysia.Research limitation – There are some constraints. First, it focuses only on the actions of Malaysian consumers against a takaful scheme for mental health disorders; thus, the findings cannot be generalized to other takaful schemes. Therefore, more studies in other takaful settings, such as general takaful, need to begin. Second, this study considered only four factors were awareness, perception, attitude and subjective norm, and the factors selected might not cover all the factors which may have an effect on Malaysia's intentions toward takaful mental health disorders scheme.Originality - This study not only helps takaful operators design, develop and promote better approved takaful products and services, but also offers a new insight into how these products and services can be marketed to these particular consumers. Previous empirical studies that employed TRA focused on various types of variables, such as attitude and subjective norm, especially in the financial service environment. This research thus adds to the body of information by analysing the relative value of the goal affecting it.
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