The Influence of Islamic Social Reporting Disclosure to Third Party Fund in Indonesian Islamic Bank 2010-2014

Abstract

Islamic Social Reporting is important for Islamic banks to meet the expectations of stakeholders, particularly for the Muslim community who are now getting interested managing its financial and economic activities in Islamic banking. The author would like to develop the research by using ISR as an index of social responsibility disclosure by Islamic principles make the variables affecting the third party funds is an indicator of the level of third party funds as measured from its assets. Disclosure of Islamic Social Reporting is a reporting standard social performance of companies based on sharia. In this study, the Islamic Social Reporting (ISR) ISR is calculated by the index consisting of six themes, namely disclosure Finance and Investment, Products, Employees, Social, Environmental and Corporate Governance. Each theme has votes totaling 48 assessment items. The Third Party Funds is calculated by the total number of the total assets of Islamic banks. The purpose of this study was to determine the level of reporting of Islamic Social Reporting, to determine the level of third party funds, especially in the Islamic Banks in Indonesia, and to determine how much influence the disclosure of Islamic Social Reporting to Third Party Funds in Islamic Banks in Indonesia period in 2010 -2014. The method used in this research using quantitative methods. Source of this research is secondary data derived from the annual financial statements 8 Islamic commercial bank, Bank Muamalat Indonesia, Bank Syariah Mandiri, Bank BNI Syariah, Bank Jabar Banten Syariah, Bank BRI Syariah, Bank Bukopin Syariah, Bank BCA Syariah, Panin Bank Syariah period 2010-2014, the data collection technique is documentation. Data analysis techniques used by regression analysis and hypothesis testing. The results of this study indicate that the disclosure of Islamic Social Reporting significant effect on third-party funds in Islamic Banks in Indonesia during the period 2010-2014. It can be seen from the calculation of simple regression analysis that t calculate equal to 5.878, while t table for the 5% significance level and degrees of freedom (n-2) = 38, the obtained t (0.05, 38) = 2.024. Based on the results t is greater than t table (5.878 & 2.024), suggesting that H0 is rejected and Ha is accepted, which means a significant difference between the Islamic Social Reporting Third Party Funds.