Authors :
Muhammad Helka Farras Riyadi; Budi Prijanto
Volume/Issue :
Volume 8 - 2023, Issue 2 - February
Google Scholar :
https://bit.ly/3IIfn9N
Scribd :
https://bit.ly/3YbogQP
DOI :
https://doi.org/10.5281/zenodo.7690224
Abstract :
This study aims to examine the effect of
mudharabah and musyarakah financing on the
profitability of Islamic banks through profit sharing.
The approach used in this research is a quantitative
approach. The samples used in this study were 9 Islamic
banks during the 2015-2018 research period. Research
data were analyzed using path analysis techniques with
the help of the Smartpls program. The results of this
study indicate that (1) Mudharabah financing has a
positive and significant effect on profit sharing, meaning
that the higher the mudharabah financing, the higher
the profit sharing income for Islamic banks, and vice
versa, mudharabah financing which is easy has the
potential to reduce profit sharing income for Islamic
banks; (2) Musyarakah financing has no effect on profit
sharing, this means that the level of musyarakah
financing has no effect on the level of profit sharing
income of Islamic banks; (3) Mudharabah financing has
a positive and significant effect on ROE, meaning that
the higher the mudharabah financing, the higher the
ROE value of the bank, and vice versa the lower the
mudharabah financing, the lower the ROE value of
Islamic banks; (4) Musyarakah income has a negative
and significant effect on ROE, meaning that the higher
the musyarakah financing, the lower the Islamic bank's
ROE value, and vice versa the lower the musyarakah
financing, the higher the Islamic bank's ROE; (5) Profit
sharing income does not affect the profitability of Islamic
banks, the level of profit sharing income does not
significantly affect the ROE of Islamic banks; (6)
Revenue sharing does not compensate for the effect of
mudharabah financing on profitability and (7) Revenue
sharing does not compensate for the effect of
musyarakah financing on profitability.
Keywords :
mudharabah financing, musyarakah financing, profitability, profit sharing.
This study aims to examine the effect of
mudharabah and musyarakah financing on the
profitability of Islamic banks through profit sharing.
The approach used in this research is a quantitative
approach. The samples used in this study were 9 Islamic
banks during the 2015-2018 research period. Research
data were analyzed using path analysis techniques with
the help of the Smartpls program. The results of this
study indicate that (1) Mudharabah financing has a
positive and significant effect on profit sharing, meaning
that the higher the mudharabah financing, the higher
the profit sharing income for Islamic banks, and vice
versa, mudharabah financing which is easy has the
potential to reduce profit sharing income for Islamic
banks; (2) Musyarakah financing has no effect on profit
sharing, this means that the level of musyarakah
financing has no effect on the level of profit sharing
income of Islamic banks; (3) Mudharabah financing has
a positive and significant effect on ROE, meaning that
the higher the mudharabah financing, the higher the
ROE value of the bank, and vice versa the lower the
mudharabah financing, the lower the ROE value of
Islamic banks; (4) Musyarakah income has a negative
and significant effect on ROE, meaning that the higher
the musyarakah financing, the lower the Islamic bank's
ROE value, and vice versa the lower the musyarakah
financing, the higher the Islamic bank's ROE; (5) Profit
sharing income does not affect the profitability of Islamic
banks, the level of profit sharing income does not
significantly affect the ROE of Islamic banks; (6)
Revenue sharing does not compensate for the effect of
mudharabah financing on profitability and (7) Revenue
sharing does not compensate for the effect of
musyarakah financing on profitability.
Keywords :
mudharabah financing, musyarakah financing, profitability, profit sharing.
