Corporate governance and Islamic law compliance risk

Figures & data

Table 1. Details of the research sample

Years	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019
Banks that report non-halal income	4	7	8	8	10	11	11	11	11	11	11

Table 2. Descriptive statistic

	NHIR	SSB SIZE	SYARIAHEXPERT	BODSIZE	BODIND	RO IND	AUDIT	LERNER	INDIVER	EQUITY	ASSETS (Billion Rp)
Mean	5.496	2.367	0.765	4.478	0.673	0.837	3.532	0.548	0.128	0.290	19,600
Median	0.009	2.000	0.667	4.000	0.750	1.000	4	0.449	0.103	0.118	7,050
Maximum	61.406	3.000	1.000	6.000	1.000	1.000	4	1.000	0.669	0.601	112,000
Minimum		2.000	0.333	4.000	0.400	0.250	3	0.374	0.000	0.012	511
Std. Dev.	23.587	0.485	0.241	0.585	0.139	0.220	0.501	0.536	0.111	0.085	25,500
Skewness	0.490	0.553	−0.178	0.764	0.148	−1.103	−0.128	0.334	1.993	1.234	1.647
Kurtosis	2.804	1.306	1.293	2.594	2.926	3.114	1.016	1.779	8.887	4.940	4.831

Table 3. Correlation between independent variables

	SSB SIZE	SYARIAH EXPERT	BODSIZE	BODIND	RO IND	AUIDT	LERNER	INDIVER	EQUITY	LOG (ASSETS)
SSBSIZE	1.000
SYARIAHEXPERT	0.123	1.000
BODSIZE	0.791	0.162	1.000
BODIND	−0.257	−0.500	−0.361	1.000
ROIND	−0.300	−0.207	−0.217	0.228	1.000
AUDIT	0.083	0.111	0.139	−0.162	−0.217	1.000
LERNER	0.086	−0.100	0.086	0.123	0.037	0.114	1.000
INDIVER	0.130	0.224	0.126	−0.172	−0.015	−0.081	−0.551	1.000
EQUITY	0.119	−0.028	0.041	−0.047	−0.013	0.142	0.023	0.059	1.000
LOG(ASSETS)	0.381	0.106	0.526	−0.164	−0.025	0.239	−0.121	0.092	−0.384	1.000

Table 4. Fixed effect model test results

Variables		Model 1	Model 2	Model 3
SSBSIZE	Coefficient	17.28	33.09	-
	Std. Error	87.05	80.67	-
SYARIAHEXPERT	Coefficient	595.21	585.28	-
	Std. Error	141.12***	139.27***	-
BODSIZE	Coefficient	44.45	-	−31.11
	Std. Error	58.89	-	51.81
BODIND	Coefficient	66.69	-	55.74
	Std. Error	149.28	-	156.01
ROIND	Coefficient	−448.28	−440.87	−372.00
	Std. Error	149.24***	146.36***	133.60**
AUDIT	Coefficient	−59.64	−57.55	−83.24
	Std. Error	30.62*	30.23*	30.95**
LERNER	Coefficient	15.45	15.58	16.49
	Std. Error	3.36***	3.32***	3.60***
INDIVER	Coefficient	−210.41	−227.27	−47.55
	Std. Error	180.56	177.51	183.68
EQUITY	Coefficient	19.52	19.47	51.37
	Std. Error	33.25	32.92	29.54*
LOG(ASSETS)	Coefficient	−1.41	−0.01	26.11
	Std. Error	32.72	32.25	26.00
C	Coefficient	46.89	208.72	49.83
	Std. Error	1094.25	1064.73	809.34
Robust standard error		Yes	Yes	Yes
Adjusted R^2		0.6719	0.5393	0.4292

*** sig.at 1%; ** sig. at 5%; * sig at 10%

Table 5. Robustness test

Variables		Model 1	Model 2	Model 3
SSBSIZE	Coefficient	−87.89	−45.51	-
	Std. Error	55.47	62.61	-
SYARIAHEXPERT	Coefficient	164.66	392.61	-
	Std. Error	69.29**	114.47***	-
BODSIZE	Coefficient	−29.35	-	3.90
	Std. Error	46.71	-	61.24
BODIND	Coefficient	208.17	-	45.17
	Std. Error	124.81	-	165.07
ROIND	Coefficient	−209.54	−325.64	−550.22
	Std. Error	74.76**	124.04**	164.12***
AUDIT	Coefficient	−155.07	−77.52	−64.81
	Std. Error	21.65***	27.68**	34.04*
LERNER	Coefficient	5.96	14.76	18.06
	Std. Error	2.97**	3.26***	3.67***
INDIVER	Coefficient	52.87	−189.45	−32.62
	Std. Error	151.30	168.66	195.08
EQUITY	Coefficient	45.68	29.29	56.84
	Std. Error	20.28**	27.36	35.67
LOG(ASSETS)	Coefficient	38.46	7.73	32.38
	Std. Error	14.54**	24.50	35.28
C	Coefficient	−286.27	252.49	−183.09
	Std. Error	389.84	754.86	1187.25
Robust standard error		Yes	Yes	Yes
Adjusted R^2		0.2066	0.2281	0.1082

*** sig.at 1%; ** sig. at 5%; * sig at 10%