The Effect of Islamic Ethical Identity and Market Share on the Financial Performance of Islamic Banking Registered with the Indonesian Financial Services Authority (OJK) in 2014–2017

Abstract

This study aims to find out and explain the influence of Islamic ethical identity and market share on Islamic banking financial performance registered with the Indonesian Financial Services Authority in 2014–2017. The population in this study was Islamic commercial banks registered with the Financial Services Authority during 2014–2017. The sample consisted of 11 Islamic commercial banks selected using purposive sampling. The data analysis method used was multiple linear regression analysis. The results of hypothesis testing show that Islamic ethical identity is not significantly related to financial performance as measured by return on assets, so this result does not support the proposed hypothesis in this study. Meanwhile, the results also show that market share has a positive and significant effect on financial performance as measured by return on assets, which is consistent with the proposed hypothesis in this research.