The Effect of Musharakah and Murabaha Financing on Profitability with Non-Performing Financing as a Moderating Variable (in Sharia Business Units Registered with the Financial Services Authority)
Abstract
This study aims to analyze the effect of Musharakah and murabahah financing on profitability in Islamic business units, as well as to examine the impact of Non-Performing Financing (NPF) on profitability. Additionally, this research assesses whether NPF can moderate the effect of Musharakah and murabahah financing on profitability. Thus, the study is expected to provide comprehensive insights into the relationship between types of Islamic financing, financing quality, and financial performance of Islamic business units. The research method used is a quantitative approach with eight Islamic business units selected using purposive sampling between 2020 and 2023. The data were analyzed using Moderated Regression Analysis to test the hypotheses proposed in the study. The results indicate that Musharakah financing has a negative and significant effect on profitability, with a coefficient of -3.562 and a probability value of 0.001. This suggests that higher Musharakah financing is associated with decreased financial performance of Islamic banks. Conversely, murabahah financing has a positive and significant effect on profitability, with a coefficient of 4.593 and a probability value of 0.000, meaning that higher murabahah financing is associated with improved financial performance. NPF is not able to moderate the effect of Musharakah on profitability, with a coefficient of -2.667 and a probability value of 0.013, but it is able to moderate the effect of murabahah on profitability, with a coefficient of 8.981 and a probability value of 0.000. These results are consistent with several previous studies that support these findings.
Downloads
References
Anggraini. (2020). The Effect of Third-Party Funds, Non-Performing Financing, Profit Sharing Rate, and Own Capital on Profitability with Profit Sharing Financing as an Intervening Variable in Islamic Banking. Indonesian Journal of Sustainability Accounting, Pamulang University. https://doi.org/10.32493/JABI.v1i1.y2018.p122-146
Ayu Ningsih, W. (2023). The Effect of Mudharabah and Musyarakah Financing on Profitability in Islamic Commercial Banks in Indonesia. Scientific Journal of Educational Wahana, February 2023(4), 542–551. https://doi.org/10.5281/zenodo.7684655
Anshori, A. G. (2020). Islamic Banking in Indonesia. Yogyakarta: Gajah Mada University Press.
Antonio, Muhammad Syafii (2020). Islamic Banks: From Theory to Practice. Jakarta: Gema Insani.
Anisya. (2017). The Effect of Mudharabah, Musyarakah, and Murabahah Financing on Return on Asset through Non-Performing Financing as an Intervening Variable (in Islamic Commercial Banks Registered with the Financial Services Authority). Journal of Accounting and Management, Vol 16 No. 01
Apriani. (2021). The Effect of Murabaha, Mudharabah, and Musyarakah Financing on Financial Performance (ROA) with NPF and BOPO as Moderating Variables in Islamic Commercial Banks During the COVID-19 Pandemic. Proceedings of the National Seminar, Pelita Bangsa University Bekasi. https://doi.org/10.46306/rev.v3i1.142
Astriani. (2020). The Effect of Musyarakah and Murabahah Financing on Profitability in Islamic Rural Banks of Harta Insan Karimah. Master's Thesis, UIN Syarif Hidayatullah Jakarta.
Azmi. (2020). Analysis of the Effect of Financing Volume on Profitability with BOPO as a Moderating Variable in Islamic Commercial Banks in Indonesia. EBBANK Journal, STIE Bank BPD Jateng.
Bahri, S. (2022). The Effect of Murabaha, Mudharabah, and Musyarakah Financing on Profitability. JAS (Journal of Sharia Accounting), 6(1), 15–27. https://doi.org/10.46367/jas.v6i1.502
Darsono (2020). The Journey of Islamic Banking in Indonesia. Jakarta: Bank Indonesia.
Dr. Oyong Lisa, S. M. (2014). Islamic Banking Accounting. PT REVKA MEDIA.
Fahmi, Irham. (2020). Introduction to Financial Management Theory and Q&A. Bandung: Alfabeta.
Fazrian. (2019). The Effect of Mudharabah, Musyarakah, and Murabahah Financing on Return on Asset through Non-Performing Financing as an Intervening Variable (in Islamic Commercial Banks Registered with the Financial Services Authority). Journal of Accounting and Management. https://doi.org/10.36406/jam.v16i01.265
Irvan Muhamad Rizky, & Azib. (2021). The Effect of Mudharabah, Murabahah, and Musyarakah Financing on Return on Assets. Journal of Management and Business Research, 1(1), 16–24. https://doi.org/10.29313/jrmb.v1i1.35
Ismail. (2013). Islamic Banking. Jakarta: Kencana Prenada Media Group.
Lisa, O., Dahlan, A., & Alex. (2022). Non-Performing Financing as a Medium of Sharia Cooperative Performance in East Java. Journal of Islamic Economics Theory and Applied. https://orcid.org/0000-0003-1963-6319
Mardani. (2012). Islamic Economic Jurisprudence. Jakarta: Kencana.
Nugroho, T. R., Muawanah, U., & Farhan, D. (2020). The Effect of Profitability and Institutional Ownership on Firm Value with Capital Structure as a Moderating Variable in Property and Real Estate Companies Listed on the IDX for the 2015-2018 Period. Accounting and Finance Research Journal.
Purwati, & Sagantha, F. (2022). The Effect of Murabaha and Musyarakah Financing on Profitability with Non-Performing Financing (NPF) as a Moderating Variable (Empirical Study on Islamic Banks Registered with the Financial Services Authority (OJK) for the 2020-2021 Period). Revenue Journal. https://doi.org/10.46306/rev.v3i1.142
Priyadi, Maswar Patuh (2020). The Effect of Profitability and Size on Firm Value with CSR as a Moderating Variable. Journal of Accounting Science and Research, Volume 7, No. 3 March 2020. http://jurnalmahasiswa.stiesia.ac.id/index.php/jira/issue/view/7
Qomariyah, N. (2014). Determining Murabaha Margin at Bank Muamalat Indonesia, Malang Branch.
Ramadhanti, F., Atichasari, A. S., Kristanti, D., Accounting, F., Economics, F., & Business, D. (2022). The Effect of Murabaha, Mudharabah, and Musyarakah Financing on Profitability (ROA) with Non-Performing Financing (NPF) as a Moderating Variable (Study at Bank Muamalat Indonesia for the 2012-2021 Period). http://ejournal.unipma.ac.id/index.php/fiscal/
Rizky, I. M. (2021). The Effect of Mudharabah, Murabahah, and Musyarakah Financing on Return on Assets. Journal of Management Research, 16-24.
Sari, H., Octaviana, & Apriani. (2023). The Effect of Mudharabah, Musyarakah, and Murabahah Financing on Profitability. Jesya (Journal of Economics & Islamic Economics).
Saeed, Abdullah. (2004). Islamic Banking and Interest: A Study of The Prohibition of Riba and its Contemporary Interpretation, translated by Muhammad Ufuqul Mubin. Yogyakarta: Pustaka Pelajar.
Sudana, I Made. (2020). Corporate Financial Management: Theory and Practice. Jakarta: Erlangga.
Sugiyono (2019). Quantitative, Qualitative, and R&D Research Methods. Bandung: Alphabet.
Syahruddin, (2013). Implementation of Musyarakah Mutanaqisah as an Alternative to Murabaha Financing in Islamic Banking, Vol. 9, No. 1, April 2013.
Triyuwono, Iwan. (2015). Islamic Accounting: Perspectives, Methodology, and Theory. Jakarta: PT. Raja Grafindo Persada.
Umila, T., Abdul, & Oyong. (2021). The Effect of Financing and Training on Return on Assets through Non-Performing Financing in Sharia Savings and Loans Cooperatives in East Java. Indonesian Accounting Journal, 17(1), 64-70. Retrieved from https://ejournal.unigamalang.ac.id/index.php/JAI/article/view/564
Widianengsih. (2020). The Effect of Murabaha, Mudharabah, and Musyarakah Financing on the Profitability of Islamic Banks in Indonesia. AKUNSIKA Journal of Accounting and Finance, Singaperbangsa Karawang University. http://jurnal.poliupg.ac.id/index.php/akunsika
Zulvia, A. R., & Nawirah. (2021). Implementation of Margin-Based Murabaha Contracts. Eldinar: Journal of Islamic Finance and Banking. https://doi.org/10.18860/ed.v9i2.11867
Copyright (c) 2024 Awin Awin Zulvia, Oyong Lisa, Djuni Farhan
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
