Intellectual capital, islamic corporate governance, and maqasid-based performance

Fatia Rahmadini, Dodik Siswantoro

Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review


The purpose of this study is to examine whether Islamic corporate governance and intellectual capital affect the maqasid-based performance of Islamic banks in the Association of Southeast Asian Nations region. This empirical study uses panel data from 30 Islamic banks for the period 2014-2017. The empirical results show that intellectual capital is positively related to maqasid-based performance, but that there is no relationship between the Shari’ah Supervisory Board (SSB) and maqasid-based performance. This suggests that the greater the value added of the management of intellectual capital owned by Islamic banks, the more they will improve their maqasid-based performance, which Islamic banks rely heavily on as investments related to intellectual capital, such as human resources, trademark development, and business systems and processes. The results showed no evidence that the composition of the SSB, whose members vary in educational background and experience, does not enhance maqasid performance because the SSB does not function alone in supervising and evaluating the performance of Islamic banks and the required the role played by other elements of Islamic governance such as the religious audit. This study contributes to the literature on Islamic banking. To the authors’ knowledge, this study is the first to examine the effect of the SSB and intellectual capital on improving maqasid performance in Islamic banks.

Original languageEnglish
Title of host publicationAccounting, Auditing, CSR, and the Taxation in a Changing Environment
Subtitle of host publicationA Study on Indonesia
PublisherNova Science Publishers, Inc.
Number of pages19
ISBN (Electronic)9781536165180
ISBN (Print)9781536162776
Publication statusPublished - 1 Jan 2019


  • Intellectual capital
  • Islamic banking
  • Maqasid shari’ah
  • Shari’ah supervisory board


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