Penilaian Kualitas dan Risiko Pembiayaan Bank Syari'ah

The quality of productive assets plays a significant role in the success of Islamic banking, not just a mere function. Islamic banks consistently measure their performance by referring to the standard of productive asset quality as a benchmark. The prosperity of an Islamic bank's business substantially depends on its ability to manage investments by adhering to two main principles: the prudence principle and the Sharia principle. The aim of this research is to conduct a comprehensive evaluation of the quality and risks in Islamic bank financing. To face the complexity and dynamics of the Islamic banking world, a qualitative approach was used. The research method is based on the post-positivism philosophical foundation, which views social reality as a whole, dynamic, complex, meaningful, and colored by interactive relationships.

Corporate Governance, Product Market Competition, Corporate Diversification and Value of Cash Holding

The purpose of this research is to investigate effect of corporate governance on different facets of cash management i-e, level of cash holding, value of cash holding, utilization of excess cash and performance. Furthermore, the role of product market competition is checked in the relationship of corporate governance with different facets of cash management and to get more detail analysis role of family ownership and Shariah compliance is also checked. The research also investigated effect of corporate diversification on value of cash holding in strong governed firms and poorly governed firms; competitive and concentrated industries; family and non-family firms; Shariah and non-Shariah compliant firms. The study used unbalanced panel data of 196 companies from the years 2006 to 2014. All models generally include time dummies and industry fixed effect with standard error cluster to firm. The result shows that corporate governance has significant negative effect on corporate cash holding which supports flexibility hypothesis. Moreover, corporate governance has significant positive effect on value of cash holding and performance of firm through efficient utilization of excess cash due to corporate governance. The role of product market competition is explained in the context of substitution and complementary effect argument. The results generally support complementary effect of product market competition for corporate governance in all relationship with cash management and performance except with level of cash holding that support substitution effect. Substitution effect claim that external market discipline alone is enough mitigate agency problem. On the other hand, complementary hypothesis claim that external market discipline need efficient internal governance to mitigate agency problem. Family firms have high agency problem compared to non-family firms and corporate governance leads to proper utilization of excess cash that leads to high value of cash holding and performance in family firms. The dissertation also investigated effect of corporate governance on different facets of cash management in Shariah compliant firms and nonShariah compliant firms. The result portray that corporate governance has no significant effect on level of cash holding. The result postulates insignificant effect on value of cash holding and utilization of excess cash in Shariah compliant firms which support substitution effect of Shariah compliance for corporate governance. Excess cash under good governance has same effect on performance in Shariah and non-Shariah compliant firms and the result does not support agency theory. The result also indicates that corporate diversification decreases value of cash holding due to agency problem. However, it increases value of cash holding in good governed firms compared to poorly governed firms. Similarly, it increases value of cash holding in competitive industries compared to concentrated industries because external market discipline mitigate agency problem. On the other hand, corporate diversification decreases value of cash holding in family firms, while it has significant effect on value of cash holding in Shariah compliant firms.