Year: 2025
Type: article
Abstract: The Islamic financial industry, particularly Islamic banking, requires a measurement system to assess Maqasid performance based on Islamic ideals. Maqasid performance emphasizes societal dimensions and moral principles, distinguishing it from conventional financial performance. The objective of this research is to propose a new measurement model with improved capabilities compared to conventional models in evaluating the goals of Islamic banks and communicating messages to their stakeholders. To achieve this, literature was reviewed to gain insights into Maqasid performance and its measurement. Using a qualitative method, ideal measurement indicators were analyzed according to the basic framework for Islamic financial report preparation and presentation applicable in Indonesia, i.e. KDLPKS, and the results were used to draft a Maqasid performance measurement model. This study finds that economic and social concepts must align with the Maqasid performance objectives of Islamic banks in Indonesia. Enhancing Indonesian stakeholders’ literacy in Maqasid performance is crucial for a comprehensive understanding. These findings emphasize the need for improved accountability among Islamic banks in adopting Maqasid performance measures and achieving a balance between profit, economic gains, and social welfare, alongside ethical values and sustainable development.
Source: Cogent Business & Management
Authors: Sophia Andini, Nurkholis, Rosidi, Syaiful Iqbal
Institutions: Binus University, University of Brawijaya
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: gold
Estimated APC paid: $1,165
OpenAlex ID: W4417030441