The relationship between profit sharing ratio and zakah performance ratio on return on assets
Read abstract
The research aims to investigate and study the implementation of Sharia compliance and financial sustainability, especially at Bank Pembiayatan Rakyat Syariah (BPRS) or Sharia People's Financing Bank in Indonesia. For this reason, an empirical study is needed to determine the relationship between the Profit-Sharing Ratio and the Zakah Performance Ratio on Return on Assets in BPRS in Indonesia. The research method used is a quantitative approach using secondary data, and data analysis techniques using multiple regression. The research results show that partially the profit-sharing ratio has a significant effect on the return on assets of BPRS in Indonesia. On the other hand, the zakat performance ratio does not significantly influence the return on assets of BPRS in Indonesia. However, simultaneously or together the profit-sharing ratio and zakat profit ratio significantly affect the profitability of BPRS in Indonesia. Thus, the research is expected to provide a constructive contribution to the development of the world of science, for the government, for practitioners and others related to the implementation of Sharia compliance and financial sustainability of Sharia Financial Institutions in general, and of BPRS both globally and locally—Indonesia in particular.