The Influence Of Business Activities And The Aplication Principles On Profit Sharing

Authors

  • Riezalva Dhiaulhaq Murdiyanto Department of Development Economics, Faculty of Economic and Business, University of Jember, Indonesia
  • Rizki Dwi Herlambang Department of Development Economics, Faculty of Economic and Business, University of Jember, Indonesia
  • Amelia Santika Department of Development Economics, Faculty of Economic and Business, University of Jember, Indonesia

Keywords:

Islamic Finance, Profit Sharing, Sharia Principles, Business Activities

Abstract

The Islamic finance industry has experienced rapid growth in various countries, including Indonesia and Malaysia. Profit sharing is a system of profit sharing between Islamic financial institutions and customers. This study aims to analyze the effect of business activities (such as mudharabah and musyarakah) and the application of sharia principles on profit sharing in Islamic finance institutions in Indonesia and Malaysia. This research uses the Structural Equation Modeling (SEM) method with Smart PLS software. The results of this study are expected to contribute to the development of Islamic finance theory and practice, particularly by providing implications for the design of profit-sharing schemes and the role of sharia principles in Islamic financial institutions.

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Published

2024-07-26

Issue

Vol. 10 No. 1 (2023): Tamansiswa Manajement Journal International

Section

Articles