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Entrepreneurship and Sustainability Issues Open Access Q1
Scopus - coverage starting with 2017 material
Received: 2019-04-10  |  Accepted: 2019-06-21  |  Published: 2019-09-30

Title

The impact of Islamic bank financing on business


Abstract

From the test results concluded that the Local Number Index (LNI) variable (business tendency index) affects Local Number Portability (LNP) variable (Islamic bank financing). The LNP variable (Islamic bank financing) does not affect this variable (business tendency index). So, there is one-way causality from the LNI (business tendency index) to LNP (Islamic bank financing). Other statistical test results showed that there is a long-term relationship between Islamic bank financing and business tendency. This is clarified by the results obtained from Johansen cointegration test. The result of cointegration test in this research is there is long-term relationship between syariah bank financing and business tendency. From the test results can be seen that the trace statistic is greater than the critical value of 5%. So in the long term, Islamic financing variables and business tendencies will affect each other. This shows that the financing of sharia banks whose allocation of financing is directed to the real sector, even forbidden to finance riba investments and speculation, will drive the business nationally, and vice versa, business that runs well and smoothly, will contribute to the development of Islamic banking performance.


Keywords

business tendency, conventional banks, Islamic banks, Islamic Bank financing, Johansen Cointegration test


JEL classifications

Z23 , Z29


URI

http://jssidoi.org/jesi/article/359


DOI


Pages

133-145


Funding

This research was supported by the research project, which has received funding from the Faculty Economics and Bussiness, Universitas Airlangga, Surabaya, Indonesia

This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License

Authors

Herianingrum, Sri
Airlangga University, Surabaya, Indonesia http://www.unair.ac.id
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Ratnasari, Ririn Tri
Airlangga University, Surabaya, Indonesia http://www.unair.ac.id
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Widiastuti, Tika
Airlangga University, Surabaya, Indonesia http://www.unair.ac.id
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Mawardi, Imron
Airlangga University, Surabaya, Indonesia http://www.unair.ac.id
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Amalia, Rachmi Cahya
Airlangga University, Surabaya, Indonesia http://www.unair.ac.id
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Fadhlillah, Hanif
Airlangga University, Surabaya, Indonesia http://www.unair.ac.id
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Journal title

Entrepreneurship and Sustainability Issues

Volume

7


Number

1


Issue date

September 2019


Issue DOI


ISSN

ISSN 2345-0282 (online)


Publisher

VšĮ Entrepreneurship and Sustainability Center, Vilnius, Lithuania

Cited

Google Scholar

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References