The Consistency Of Islamic Corporate Financial Sustainability In Covid-19 Pandemic: An Empirical Analysis

Authors

  • Yanuar Trisnowati Business School, IPB University
  • Rini Dwiyani Hadiwidjaja Accounting Department, Faculty of Economics, Universitas Terbuka http://orcid.org/0000-0002-7867-3286
  • Tita Nurvita Business School, IPB University

DOI:

https://doi.org/10.26740/jaj.v12n2.p179-192

Keywords:

corporate governance, macroeconomics, financial sustainability, covid-19 pandemic

Abstract

The concept of sustainability is the ability of a company to carry out work program activities in a sustainable manner to achieve company goals. This study aims to examine empirically the consistency of financial sustainability in Islamic companies before and during the Covid-19 pandemic. To measure the financial sustainability performance, this study used ratios from financial income and financial expenditure. The sample in this study used purposive sampling that is 14 Islamic companies on the Indonesia Stock Exchange. Multiple linear regression and a chow test were used to examine the consistency. The result showed that The financial sustainability ratio of companies at the time of the pandemic has a higher value than before the pandemic. the pandemic period in Indonesia affected the financial stability of companies listed on the Jakarta Islamic Index. The independent variable that affects the dependent variable experiences structural changes in Indonesia in the period 2019 to quarter II of 2020

Author Biography

Rini Dwiyani Hadiwidjaja, Accounting Department, Faculty of Economics, Universitas Terbuka

Dosen Akuntansi pada Jurusan Akuntansi Universitas Terbuka dengan bidang penelitian akuntansi keuangan dan manajemen keuangan. Sedang tugas belajar program doktoral manajemen bisnis di Sekolah Bisnis IPB.

References

Ayayi, A. G., & Sene, M. (2010). What Drives Microfinance Institution’s Financial Sustainability Author ( s ): Ayi Gavriel Ayayi and Maty Sene Source : The Journal of Developing Areas , Vol . 44 , No . 1 ( Fall 2010 ), pp . 303-324 Published by : College of Business , Tennessee State U. The Journal of Development Areas, 44(1), 303–324.

Burns, C. J. M., Houghton, L., & Stewart, H. (2020). Sustainability –A key to Australian finance directors improving their organisation’s CSR culture. Corporate Social Responsibility and Environmental Management, 27(2), 1164–1176.

Chen Chun-Da , Chen Chin-Chun, T. W.-W., & Bor-Yi, H. (2009). The Positive and Negative Impacts of the Sars Outbreak : A Case of the Taiwan Industries. The Journal of Developing Areas, 43(1), 281–293.

De Lucia, C., Pazienza, P., & Bartlett, M. (2020). Does good ESG lead to better financial performances by firms? Machine learning and logistic regression models of public enterprises in Europe. Sustainability (Switzerland), 12(13), 1–26.

Del Giudice, A., & Paltrinieri, A. (2017). The impact of the Arab Spring and the Ebola outbreak on African equity mutual fund investor decisions. Research in International Business and Finance, 41(May), 600–612.

Ejiogu, A., Okechukwu, O., & Ejiogu, C. (2020). Nigerian budgetary response to the COVID-19 pandemic and its shrinking fiscal space: financial sustainability, employment, social inequality and business implications. Journal of Public Budgeting, Accounting and Financial Management.

Galuh Larasati, D., Isynuwardhana, D., & Gani Asalam, A. (2019). Corporate Governance, Rasio-Rasio Keuangan Dan Financial Sustainability Pada Perbankan Umum Di Indonesia(Studi Pada Perusahaan Perbankan yang Terdaftar di Bursa Efek Indonesia peri-ode 2014-2017). ISEI Accounting Review, III(2), 39–43. Retrieved from http://jurnal.iseibandung.or.id/index.php/iar

Gutiérrez-López, C., & Abad-González, J. (2020). Sustainability in the banking sector: A predictive model for the European banking union in the aftermath of the financial crisis. Sustainability (Switzerland), 12(6).

Holub, R., Rudevska, V., & Vovchak, O. (2018). Peculiarities of ensuring financial sustainability of the Ukrainian banking system. Banks and Bank Systems, 13(1), 184–195.

Jan, A., Marimuthu, M., Bin Mohd Mat Isa, M. P., & Shad, M. K. (2019). Bankruptcy forecasting and economic sustainability profile of the market leading Islamic banking countries. International Journal of Asian Business and Information Management, 10(2), 73–90. https://doi.org/10.4018/IJABIM.2019040104

Jeong, H., Shin, K., Kim, E., & Kim, S. (2020). Does open innovation enhance a large firm’s financial sustainability? A case of the Korean food industry. Journal of Open Innovation: Technology, Market, and Complexity, 6(4), 1–17.

Karlsson, M., Nilsson, T., & Pichler, S. (2014). The impact of the 1918 Spanish flu epidemic on economic performance in Sweden. An investigation into the consequences of an extraordinary mortality shock. Journal of Health Economics, 36(1), 1–19.

Marwa,N., & Aziakpono, M. (2015). Financial sustainability of Tanzanian saving and credit cooperatives. International Journal of Social Economics, 42(10), 870–887.

Nasfi, Syukri Iska, Nofrivul, A. (2019). Financial Sustainability Inthe Assessment of Thefinancial Performance of West Sumatra Sharia Financing Bank (BPRS). Menara Ekonomi, 5(1), 51–62.

Nuraini, N., S, K. K., & Apri, M. (2020). Data dan Simulasi COVID-19 dipandang dari Pendekatan Model Matematika Akumulasi kasus COVID-19 : Italia.

Platonova, E., Asutay, M., Dixon, R., & Mohammad, S. (2018). The Impact of Corporate Social Responsibility Disclosure on Financial Performance: Evidence from the GCC Islamic Banking Sector. Journal of Business Ethics, 151(2), 451–471. https://doi.org/10.1007/s10551-016-3229-0

Sahetapy, K. A. (2019). The Relationship Between Macroeconomy Factors and Indonesian Banks’ Financial Sustainability. Abstract Proceedings International Scholars Conference, 7(1), 1204–1216.

Satyakti, Y., Budiman, T., & Febrian, E. (2018). Islamic Bank Financial Sustainability: A Micro Econometric Approach. SSRN Electronic Journal, (January). https://doi.org/10.2139/ssrn.3259055

Semaw Henock, M. (2019). Financial sustainability and outreach performance of saving and credit cooperatives: The case of Eastern Ethiopia. Asia Pacific Management Review, 24(1), 1–9. Retrieved from https://doi.org/10.1016/j.apmrv.2018.08.001

Sk, B. (2019). The Moderating Effect of Depthof Outreach on the Relationship between Financial Leverage and Financial Sustainability of Microfinance Institution. Journal of Economic Business Studies, 2(7).

Spence, M. (1973). Job Market Efficiency. The Quarterly Journal of Economics. 87(3), 355-374.

Sunarko, A. E. S. dan M. R. (2015). Pengaruh Variabel Rasio Keuangan Terhadap Financial Sustainability Ratio Pada Bank Campuran Periode 20011-2013. Eksplorasi, 27(2), 10.

Tehulu, T. A. (2013). Determinants of Financial Sustainability of Microfinance Institutions in East Africa. European Journal of Business and Management, 5(17), 152–159.

Vintila, Gand Paunescu, R. A. (2016). Empirical Analysis of the Connection between Financial Performance and Corporate Governance within Technology Companies Listed on NASDAQ Stock Exchange. Journal of Financial Studies & Research.

Wang, Y. H., Yang, F. J., & Chen, L. J. (2013). An investor’s perspective on infectious diseases and their influence on market behavior. Journal of Business Economics and Management, 14(SUPPL1), 112–127.

Downloads

Published

2021-03-19

How to Cite

Trisnowati, Y., Hadiwidjaja, R. D., & Nurvita, T. (2021). The Consistency Of Islamic Corporate Financial Sustainability In Covid-19 Pandemic: An Empirical Analysis. AKRUAL: Jurnal Akuntansi, 12(2), 179–192. https://doi.org/10.26740/jaj.v12n2.p179-192
Abstract views: 783 , PDF Downloads: 610