Hubungan Penerapan Good Governance Business Syariah terhadap Islamicity Financial Performance Index Bank Syariah di Indonesia

Abstract

This study aims to determine the relationship of Good Governance Business Sharia on the performance of Islamic banks in Indonesia. The dependent variables used in this study is the financial performance of Islamic banks based on the Islamicity Financial Performance Index. The independent variabls in this study is implementation of Good Governace Business Sharia (GGBS) which measured by an index that shows the application score of GGBS by Islamic banks. The sample is Islamic Banks (BUS) which operates nationally and registered in Bank Indonesia during the period 2011 - 2014. The sample selected by purposive sampling method. Application of Good Governace Business Sharia (GGBS) was measured by index that has been prepared by Jumansyah and Syafei (2013). It is measured by an index that shows balanced application of GGBS by Islamic banks. Based on Application guidelines GGBS by KNKG (2011), variable GGBS by Islamic banks in Indonesia consists of 42 indicators. The results showed that the implementation of Good Governace Business Sharia (GGBS) showed a positive relationship to the performance of Islamic banks. This means that whenever there is an increase in the application of GGBS it will be followed by improvement in the performance of Islamic banks.