Exploring Disclosure of Corporate Governance in Indonesia’s Islamic Banking : A Maqashid Sharia Perspective

Abstrak

“Conventional” corporate governance and “Sharia” or Islamic corporate governance may be different. The main research question is how Islamic Banking disclose their corporate governance? Author would like to find an answer according to maqashid Al-Shari’ah upon the realization of Islamic Ethical or Moral’s rule. In operationalizing the disclosure, this study conduct empirical investigations by taking 3 Islamic Commercial Banking and 3 Islamic Business Unit Banking in 2016 as a sample. The annual report for the sampled bank are using content analysis to generate the formula on disclosing corporate governance with maqashid al-Sharia’ah approach.

Evidence showed that there is a lack of achievement on disclosure of corporate governance using maqashid Al-Shari’ah approach. Nevertheless, the overall industry focus mainly on rights and stakeholding, prosperity, and wealth rather than faith, self, intellect or ecology consequences. Additionally, the empirical results showed that there is no differences orientation between Islamic Commercial Banking and Islamic Business Unit Banking.