Does the efficiency model increase Sharia and non-Sharia firm performance? A multigroup analysis

IF 2.5 Q2 BUSINESS, FINANCE Journal of Islamic Accounting and Business Research Pub Date : 2024-08-05 DOI:10.1108/jiabr-09-2022-0252

Izra Berakon, Amin Wibowo, Nurul Indarti, Nor Nabilla Muhammad, Rizaldi Yusfiarto

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Abstract

Purpose

The purpose of this study is to examine the effect of the efficiency model on firms performance. The authors also strive to test the compatibility of the efficiency models of Sharia and non-Sharia manufacturing firms.

Design/methodology/approach

The samples are manufacturing industry firms listed on the Indonesia Stock Exchange from 2013 to 2021. This study used 68 firms, with details of 34 Sharia while the remaining 34 were non-Sharia. The data were analyzed using generalized least square (GLS) to test the entire formulated hypothesis. Moreover, current research provides robustness tests to gain more valid and reliable results.

Findings

The results demonstrated that cost efficiency (CE), human capital efficiency (HCE) and capital intensity (CI) affect the firm’s performance. The efficiency model is more appropriate to be applied to the manufacturing Sharia firms in Indonesia. The results are robust even though the feasible GLS and panel-corrected standards errors models are added and a split sample is applied based on certain firm characteristics.

Practical implications

This research can bridge the theory and practice that exist in companies. The authors proposed an efficiency model that can maximize firm performance profits. Moreover, it turns out that the efficiency model is more relevant to be applied to Sharia firms in Indonesia. Furthermore, the research findings have several implications notably for theoretical development, global enterprises and practitioners.

Originality/value

This study expands the literature and discussion about the efficiency model by formulating and investigating CE, HCE and CI on the firm performance which previous studies have rarely elaborated on and tested. In addition, the authors divided the sample into two groups (Sharia and non-Sharia firms) to ensure the compatibility of the implementation of the efficiency model on firm performance.

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效率模式能否提高伊斯兰教和非伊斯兰教企业的绩效？多组分析

目的本研究旨在探讨效率模式对企业绩效的影响。作者还致力于检验伊斯兰教和非伊斯兰教制造业公司效率模型的兼容性。设计/方法/途径样本为 2013 年至 2021 年在印度尼西亚证券交易所上市的制造业公司。本研究使用了 68 家企业，其中 34 家为伊斯兰教企业，其余 34 家为非伊斯兰教企业。数据采用广义最小二乘法（GLS）进行分析，以检验整个假设。研究结果表明，成本效率（CE）、人力资本效率（HCE）和资本密集度（CI）会影响公司业绩。效率模型更适合应用于印尼的制造业伊斯兰教企业。即使增加了可行的 GLS 和面板校正标准误差模型，并根据某些企业特征对样本进行了拆分，结果仍然是稳健的。作者提出了一种能使公司业绩利润最大化的效率模型。此外，事实证明该效率模型更适用于印尼的伊斯兰教企业。此外，研究结果还对理论发展、全球企业和从业人员产生了若干影响。原创性/价值本研究通过制定和调查 CE、HCE 和 CI 对企业绩效的影响，扩展了有关效率模型的文献和讨论，而以往的研究很少对这些模型进行阐述和测试。此外，作者还将样本分为两组（伊斯兰教企业和非伊斯兰教企业），以确保效率模型的实施对企业绩效的兼容性。

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来源期刊

Journal of Islamic Accounting and Business Research BUSINESS, FINANCE-

CiteScore

4.80

自引率

22.70%

发文量

期刊介绍： The journal provides a dynamic forum for the advancement of accounting and business knowledge based on Shari’ah and Islamic activities that have an impact on the welfare of society. JIABR publishes articles on the interplay between Islamic business ethics, accounting, auditing and governance, in promoting accountability, socio-economic justice (adl) and everlasting success (al-falah). It seeks to inform, among others, current theoretical and empirical research and practice in Islamic accounting, auditing and corporate governance, management of Islamic organizations, accounting regulation and policy for Islamic institutions, Shari’ah auditing and corporate governance, financial and non-financial performance measurement and disclosure in Islamic institutions and organizations. All styles of research, theoretical and empirical, case studies, practice-based papers and research notes that are well written and falling within the journal''s scope, are generally welcomed by the journal. Scope/Coverage Development of accounting, auditing and corporate governance concepts based on Shari’ah Socio-political influence on accounting and auditing regulation and policy making for Islamic financial institutions and organizations Historical perspectives on Islamic accounting, auditing and financial management Critical analysis on issues and challenges on accounting disclosure and measurement, Shari’ah audit and corporate governance Controls and risks in Islamic organizations Financial and non-financial performance measurement and disclosure.