Unveiling the Impact: How Sharia Supervisory Boards Drive Sustainability Performance
Hasbi Assidiki Mauluddi, Kristianingsih, Setiawan, Nova Aulia Khoirunnisa

Department of Accounting, Politeknik Negeri Bandung

Abstract

This study examines the influence of Sharia Supervisory Board (SSB) characteristics on the sustainability performance of Sharia banks in Indonesia. Using a quantitative method and data from 171 observations, the research evaluates the effects of SSB size (SSBS), meeting frequency (SSBM), age (SSBA), and tenure (SSBT) on sustainability performance, measured by the Global Reporting Initiative (GRI) index. The findings indicate that SSB size and meeting frequency do not significantly impact sustainability performance, with coefficients of -0.006 and -0.031, respectively, and p-values greater than 0.05. In contrast, the age and tenure of SSB members positively influence sustainability performance, with coefficients of 0.187 (p-value = 0.006) and 0.774 (p-value = 0.000). These results suggest that experienced and longer-serving board members contribute significantly to better sustainability practices. The study underscores the importance of considering board member age and tenure in improving sustainability performance in Sharia banks. Retaining experienced board members and incorporating seasoned individuals can enhance sustainability outcomes. This research provides valuable insights for policymakers and bank management in the Islamic finance sector in Indonesia and highlights the need for further exploration of SSB characteristics and their impact on sustainability.

Keywords: Sharia Supervisory Board, Sustainability Performance

Topic: Sustainable development