Analysis of the Effect of Debt Equity Ratio and Debt Asset Ratio on Islamic Social Reporting in Islamic Banks Muhammad Ridwan Mulki (a*), Elis Mediawati (b) Arini Lestari Sugiarti (c) Aulia Cahya Prasaja (d) Neng Hasnah Siti Aminah (e)
a,b,c,d,e) Accounting, Faculty of Economics and Business Education, Education University of Indonesia
Jl. Dr. Setiabudhi No. 229 Bandung 40154. Jawa Barat - Indonesia
Abstract
This research provides an overview of the relationship between Debt Equity Ratio (DER) and Debt Asset Ratio (DAR) with Islamic Social Reporting (ISR) in the context of Islamic financial institutions. This study aims to analyse the effect of DER and DAR on the level of ISR disclosure by Islamic banks as one of the Islamic financial institutions. The research method used is regression analysis using financial data and financial statements from Islamic banks. The results showed that DER has a significant influence on ISR disclosure, while DAR has no significant influence. These results suggest that the level of dependence of Islamic banks on debt affects their disclosures related to social and environmental responsibility. This study provides important insights for Islamic financial institutions in managing their capital structure to achieve sustainable and ethical business practices.
Keywords: Debt to Equity Ratio, Debt to Asset Ratio, Islamic Social Reporting, Islamic banks, Islamic financial institutions, disclosure, transparency, determinant factors.
