THE INFLUENCE OF THE MANAGER’S UNDERSTANDING ON SHARIA ACCOUNTING STANDARD, THE ROLE OF THE SHARIA SUPERVISORY BOARD AND THE QUALITY OF FINANCIAL STATEMENT ON CUSTOMER LOYALTY
Accounting Department, UPI
The existence of Sharia banks that are in accordance with sharia principles has answered most of the problems of the banking system compliance with the will of the Islamic Ummah. However, in practice there are customers’ suspicions and dissatisfactions against Sharia banks that have not fully implement the principles of sharia. This research aims to study and review the manager’s understanding on sharia accounting standards, the role of the sharia supervisory board and the quality of financial statement on customer loyalty. The research method used in this study is an explanatory survey approach, while the technique that was used in data analysis is Partial Least Square. Hypothesis testing results of this study show that the manager’s understanding of sharia principles in sharia accounting standards influences the customer loyalty but does not influence the quality of financial reporting. Meanwhile, the role of the Sharia Supervisory Board affects the quality of financial statement but does not affect the customer loyalty.
Keywords: Sharia Banking, Sharia Supervisory Board, Customer Loyalty, the quality of financial statement
Topic: Financial Management and Accounting