Research Article
The Role of Zakat Disclosure as a Mediating Variable in the Effect of Functional Diversity of the Board of Commissioners and Sharia Supervisory Board on ROE (Study on Islamic Commercial Banks in Indonesia for the 2013-2020 Period)
@INPROCEEDINGS{10.4108/eai.27-10-2023.2353551, author={Rizalnur Firdaus and Sumiati Sumiati and Atim Djazuli and Nur Khusniyah Indrawati}, title={The Role of Zakat Disclosure as a Mediating Variable in the Effect of Functional Diversity of the Board of Commissioners and Sharia Supervisory Board on ROE (Study on Islamic Commercial Banks in Indonesia for the 2013-2020 Period)}, proceedings={Proceedings of the 3rd Warmadewa International Conference on Science, Technology, and Humanity, WICSTH 2023, 27-28 October 2023, Denpasar-Bali, Indonesia}, publisher={EAI}, proceedings_a={WICSTH}, year={2025}, month={4}, keywords={zakat disclosure functional diversity board of commissioners sharia supervisory board islamic banks return on equity (roe) corporate governance}, doi={10.4108/eai.27-10-2023.2353551} }- Rizalnur Firdaus
Sumiati Sumiati
Atim Djazuli
Nur Khusniyah Indrawati
Year: 2025
The Role of Zakat Disclosure as a Mediating Variable in the Effect of Functional Diversity of the Board of Commissioners and Sharia Supervisory Board on ROE (Study on Islamic Commercial Banks in Indonesia for the 2013-2020 Period)
WICSTH
EAI
DOI: 10.4108/eai.27-10-2023.2353551
Abstract
This study aims to analyze the mediating role of zakat disclosure in the relationship between the functional diversity of the Board of Commissioners (BoC) and the Sharia Supervisory Board (SSB) on the Return on Equity (ROE) of Islamic banks in Indonesia for the period 2013-2020. The BoC's diversity, proxied by government connections and syariah industry experience, positively influences zakat disclosure and ROE, contributing to better corporate governance and financial performance. Meanwhile, the SSB's diversity, represented by expertise in the Islamic capital market and tenure, shows a negative impact on zakat disclosure and ROE. The study utilizes Partial Least Square (PLS) analysis, The analysis reveals that zakat disclosure does not significantly mediate the relationship between the diversity of either the BoC or the SSB on. These findings suggest that while functional diversity within BoC strengthens zakat disclosure and financial outcomes, similar diversity within SSB does not provide equivalent benefits.
