Open AccessDOES EXISTING ISLAMIC SOCIAL REPORTING INDEX BETTERTO ARTICULATE SHARIA VALUE?
Author(s) -
Nur Ika Mauliyah,
Mulyanto Nugroho,
Slamet Riyadi
Publication year - 2022
Publication title -
international journal of advanced research (indore)
Language(s) - English
Resource type - Journals
ISSN - 2320-5407
DOI - 10.21474/ijar01/14478
Subject(s) - sharia , originality , index (typography) , accounting , islam , sustainability reporting , business , stakeholder , value (mathematics) , corporate social responsibility , test (biology) , consistency (knowledge bases) , actuarial science , economics , computer science , public relations , management , law , political science , statistics , mathematics , paleontology , philosophy , theology , artificial intelligence , world wide web , biology , creativity
Purpose: This study aims to investigate the Islamic Social Reporting index whether it reflects sharia value implementation within companies listed in Jakarta Islamic Index compare to Sustainability Reporting Award winner. Design/methodology/approach: Data was taken from companies listed in Jakarta Islamic Index and those whom awarded as first and second place in Sustainability Reporting Award. This research uses quantitative approach to test the consistency of Sharia index implemented in JII companies compare to Sustainable Reporting Awardee companies. Using content analysis, the hypothesis is test uses one sample t-test. Findings: This study shows that there is ISR disclosure index difference between JII and SRA awardee companies. The SRA awardee outperforms JII companies, which is claimed as sharia holding value in running the business. This paper contributes to stakeholder literature by reshape disclosure index based on the shariah value in relation to social responsibility practices. The findings are noteworthy to the investor that concern with sharia value implementation through concise and consistent sharia rules. This study provides insights to how Islamic organization manage sharia implementation by redesign its indexing using more advanced methodology as well as adapted instead of adopted other guidelines without sufficient methods. There are disclosure items that the company naturally does not want to disclose. So, it cannot be detected through the content of information disclosed by the company. As a result, measurements may become biased. Originality: This paper give additional insight that even sharia based assessment need to reconstruct its sharia methodology to provide fruitful information for investor. We recommend considering assessment method to reflect sharia value.