PENGARUH SHARIA COMPLIANCE DAN ISLAMIC CORPORATE GOVERNANCE TERHADAP PROFITABILITAS PADA BANK UMUM SYARIAH PERIODE: 2013-2017
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Basically, all sharia-based institutions have an applicable legal basis where the legal basis must refer to the Qur'an and Hadith. Likewise with Islamic banking in getting profits. Where Islamic banking must comply with Islamic Principles which are actually the basis of Islamic banking operations. The purpose of this study was to analyze whether Sharia Compliance and Islamic Corporate Governance had an effect on profitability in Islamic Commercial Banks in Indonesia for the period 2013-2017. In this study, the Independen variable are Sharia Compliance and Islamic Corporate Governance. Sharia Compliance consists of 4 indicators, namely Profit Sharing Ratio (PSR), Islamic Investment Ratio (IIR), Islamic Income Ratio (IsIR), and Zakat Performance Ratio (ZPR) while Islamic Corporate Governance with Self Assessment as an indicator. Dependent variable in this study is Profitability using the indicator of Return on Assets (ROA). The sample was chosen using a purposive sampling method where the total sample used in this study was 7 Islamic Commercial Banks with 5 years of observation period. Secondary data used in this study was carried out with documentation data collection techniques. The analytical method used is Partial Least Square (PLS). The test results show that Sharia Compliance has a significant and positive effect on profitability. While Islamic Corporate Governance has no significant and negative effect on profitability.