Corporate Sharia Implementation Governance And Islamic Corporate Social Responsibility Towards Performance With Total Assets And Non Performing Financing As Moderating Variables

Abstract

This study aims to examine the empirical effects of Sharia Corporate Governance (SCG) and Islamic Corporate Social Responsibility (ICSR) on the financial performance of Sharia Commercial Banks in Indonesia, with Total Assets and Non-Performing Financing (NPF) as moderating variables. The research sample incorporates Islamic banks officially registered with the Financial Services Authority (OJK) during the 2020-2024 period, selected using specific purposive sampling criteria. The quantitative secondary data were analyzed through descriptive statistics and Moderated Regression Analysis (MRA) via SPSS software. The empirical results demonstrate that Sharia Corporate Governance exerts a negative and significant effect on banking financial performance (ROA). This finding indicates the presence of substantial compliance costs and administrative burdens associated with rigorous internal audits and thorough sharia self-assessment processes. Conversely, Islamic Corporate Social Responsibility shows no direct significant impact on ROA, suggesting that social disclosures have not been optimally converted into short-term financial returns. Furthermore, the moderation analysis proves that Total Assets significantly moderate and strengthen the negative effect of SCG on performance, implying that larger asset scales provide a better infrastructure for governance execution. However, Total Assets fail to moderate the relationship between ICSR and ROA. Meanwhile, Non-Performing Financing (NPF) is proven to be unable to moderate either the SCG or ICSR pathways toward banking performance due to risk mitigation prioritization.