Airlangga International Journal of Islamic Economics and Finance

ANALYSIS OF MACROECONOMIC VARIABLE CHANGES TO THE RESILIENCE OF ISLAMIC BANKING IN INDONESIA

Moh Yusron Solikin — 2024-11-29

This research aims to analyze the changes in macroeconomic variables such as economic growth, inflation, exchange rates, and interest rates on the resilience of Islamic banking in Indonesia. Additionally, it seeks to prove that Islamic banks are resistant to economic crisis. This quantitative study used monthly data period series of January 2006 to January 2020 with the Autoregressive Distributed Lag (ARDL) and Markov Switching (MS) methods. ARDL test results indicates that economic growth and exchange rates significantly affect Islamic banking resilience. Economic growth has positively influence, while exchange rates have a negative impact. Conversely, inflation and interest rates do not play any role in affecting Islamic Bank resilience. Through the test, Markov Switching proved that Islamic banking is resistant in the face of an economic crisis that lasts more than a period of crisis than a quiet period.

SALARY, INCENTIVES, AND EMPLOYEE PRODUCTIVITY

Dodik Alamsyah — 2024-11-29

The study aims to analyze the impact of salary and incentives on employee productivity at USPPS BMT Al-Hijrah KAN Jabung Syariah from both simultaneous and partial perspectives. The research employs multiple regression analysis, with a sample population consisting of all 40 employees, who were also the subjects of the study. The analysis results indicate that salary has a positive and significant effect on employee productivity. Additionally, incentives also contribute positively and significantly to productivity. The findings of this research are expected to provide valuable insights for continuous improvement at USPPS BMT Al-Hijrah KAN Jabung Syariah

BOARD CHARACTERISTICS AND FIRMS’ SPECIFIC VARIABLES ON CAPITAL STRUCTURE OF SHARIA COMPLIANCE FIRMS IN INDONESIA

Ahmad Fadlur Rahman Bayuny — 2024-11-29

This study examines the influence of board characteristics and firm-specific variables on the capital structure of Sharia-compliant companies in Indonesia’s basic materials sector. Utilizing data from 26 non-financial firms between 2007 and 2020, the research applies the Generalized Method of Moments (GMM) to analyze the relationships between board size, independent directors, board of commissioners, and capital structure decisions. The findings reveal that board size has a significant positive impact on leverage, while the presence of independent directors negatively affects debt usage, reflecting their role in promoting prudent financial practices in line with Sharia principles. The board of commissioners also exhibits a negative correlation with leverage, indicating that stronger supervision reduces reliance on debt. Additionally, firm-specific variables such as growth opportunities and non-debt tax shields significantly affect leverage decisions. This study contributes to the literature by offering insights into how governance practices and firm characteristics influence capital structure in Sharia-compliant firms, with implications for both corporate governance and financial management in the basic materials sector.

AN EXAMINATION OF THE IMPACT OF PRICE LEVEL AND HALAL CERTIFICATION ON PURCHASE DECISION OF ‘ANGKRINGAN FOOD’ MSME’s

Putra Ramadhani Nurwijayanto — 2024-11-29

This research investigates the impact of price levels and halal certification on consumer purchasing decisions at Angkringan Tenda Mak Gendut, an SME in Malang City. Angkringan, a traditional Javanese street food stall, serves as a focal point for local communities and embodies Javanese culinary culture. Using Price Level, Halal Certification, and MSMEs Purchase Decision as variables, a quantitative approach was employed through an online questionnaire survey. Multiple linear regression analysis was conducted to analyze consumer preferences and purchasing behaviors. The findings reveal that both price level and halal certification significantly influence customer purchasing decisions, underscoring the importance for MSMEs to carefully manage pricing strategies and maintain high halal standards to attract and retain customers. These insights highlight the dual role of affordability and halal certification in shaping consumer choices, essential for enhancing MSMEs' market competitiveness and consumer appeal.

THE EFFECT OF IN-GAME ADVERTISING AS A MARKETING TECHNIQUE ON THE PURCHASING BEHAVIOR OF GENERATION Z IN TURKEY

SELMİNAZ ADIGÜZEL — 2024-11-29

The purpose of this study is to investigate the effect of in-game advertisements, which are a marketing technique, on the purchasing behaviors of Muslim youth and the purchasing behaviors of these youth in Generation Z. The survey of the study was prepared by Betül Başer and Özgün Arda Kuş, a 31-question survey was applied to 250 volunteer students by e-mail after receiving permission from the researchers and receiving approval from the ethics committee. The survey data was uploaded to the SPSS 25 program and the frequencies and percentages of the data were obtained. In the study, analyses were conducted using quantitative research methods such as variance analysis (ANOVA), t-test and Tukey test. According to the results of the research, significant differences were determined among Generation Z according to gender, age and education level. In order to make Islamic production and investments according to new trends, it is necessary to know the characteristics of the generations well and to develop Islamic applications and software suitable for these characteristics. Since Generation Z cares about games and the advertisements they encounter during the game, it is important for Islamic investments and productions to be developed in a way that has Islamic characteristics.