Bayu Arie Fianto

Purpose: This study aims to investigate how foreign geopolitical risk (FGPR) and climate risk (CR) shape the stability of Islamic banks. Design/methodology/approach: Using panel data from 56 publicly listed Islamic banks across 16 countries from 2010 to 2024, the authors assess bank stability through the Z-score and non-performing financing ratio. The authors estimate using fixed effects, generalized least squares and two-step system generalized method of moments models and conduct several robustness checks to address endogeneity and sample consistency. Findings: FGPR from export partners significantly weakens Islamic bank stability and increases credit risk, whereas import-based risks show more mixed effects. The effects of CR on Islamic bank stability are heterogeneous across climate indicators and stability measures. Practical implications: The findings suggest that Islamic banks and regulators should pay greater attention to cross-border geopolitical exposure, particularly export-market exposure, when assessing banking vulnerabilities. Given the heterogeneous climate-risk results, the study does not provide sufficient evidence for specific climate stress-testing requirements. Continued monitoring of external risks may support early identification of vulnerabilities, while specific hedging, diversification and early-warning measures require further empirical investigation. Originality/value: This is the first study, to the best of the authors’ knowledge, to examine geopolitics and CRs together as external pressures on Islamic bank stability. By disaggregating geopolitical and CRs into specific components, this study provides a more nuanced understanding of how these risks affect Islamic bank stability and credit risk. The findings also highlight the importance of developing risk management frameworks tailored to the distinct structural features of Islamic finance.

Purpose: This study aims to analyze the influence of profitability, corporate social responsibility (CSR) and dividend policy on the value of Sharia Bank companies with Environmental, Social and Governance (ESG) performance as a mediation variable. Design/methodology/approach: The method used in this study is Structural Equation Modeling with Ordinary Least Squares (OLS) multiple linear regression. The data used were obtained from the company’s annual report, selected through purposive sampling. Findings: The analysis indicates that profitability and dividend policy have a positive, statistically significant impact on the company’s value. However, profitability can undermine ESG considerations, whereas a dividend policy can enhance ESG. Additionally, ESG has been shown to have a positive, significant effect on a company’s value. Another important finding is that ESG plays a significant mediating role in the relationship between profitability and dividend policy on company value. This suggests that the greater a company’s attention to ESG factors, the greater the impact on its value. Research limitations/implications: This research suggests that companies must strike a balance between financial performance and sustainability commitments to create more optimal long-term value. ESG can be a crucial strategy for building a reputation and enhancing investor confidence. Originality/value: The researchers used a more representative sample of 12 Islamic banks in Indonesia, given the industry’s diverse characteristics and regulations. Research that specifically examines the role of ESG as a mediating variable in Islamic banking. The researcher examines how dividend policies affect the ESG performance of Islamic banks, given the importance of social and environmental factors in their operations. Researchers used more complex statistical methods, such as OLS in SPSS or panel data analysis, to analyze the relationships between variables in more depth. With this, it is hoped that a more comprehensive understanding of the factors that affect the value of Islamic bank companies, as well as the role of ESG in this context, can be obtained.

This study examines the intersectoral stock return linkages of the Indonesian sharia-compliant capital market under pre-pandemic and pandemic times. The closing prices on a daily basis, which were retrieved from Bloomberg Terminal, were estimated through the use of the Time Varying Parameter Vector Autoregressive (TVP-VAR) model in tandem with the Diebold and Yilmaz (2014) connectedness approach, with computation being done through RStudio. Results indicate a dramatic rise in sectoral return correlations during the pandemic, along with large spillover effects. The Consumer Cyclicals sector was the largest risk transmitter, and the Property and Real Estate sector was the largest risk receiver. These results highlight the significance of sectoral interdependencies, with important implications for investors in managing cross-sector risk and policymakers in crafting effective financial regulations.

This study aims to examine the reaction of the Indonesian stock market to sukuk issuances over an 11-year period from January 2013 to December 2023. The quantitative approach is employed using an event study and market model, with the Indonesia Sharia Stock Index (ISSI) as the benchmark. This study analyzes market reactions using average abnormal returns and average trading volume activity as variables. The results show that there is a market reaction around the sukuk issuance date, with a significant negative average abnormal return in periods t-7, t+2, and t+4. Furthermore, there is no significant difference in average abnormal returns and average trading volume activity before and after the sukuk issuance. The average abnormal return and average trading volume activity of each company also show no significant difference before and after the sukuk issuance, except for the average trading volume activity of companies TINS and INKP in the basic materials sector. These findings indicate a significant negative reaction to sukuk issuances. This result contradicts previous literature that states a significant market reaction, either positive or negative. The insignificance of these results seems to be caused by investor perceptions of sukuk issuances in Indonesia.

This study aims to determine a correlation between cryptocurrency and the ISSI Index. This research uses a quantitative approach with secondary data sources and type of time series data. The data used is the daily return data of the ISSI Index and cryptocurrency in the period January 02, 2018 to December 30, 2022 obtained through TICMI and Bloomberg. The analysis technique in this study uses CCC-MGARCH and DCC-MGARCH which are processed using Oxmetrics Version 7.0 software. The results showed that cryptocurrency correlates with the ISSI Index but the strength of the correlation is still very low, which is below 10%. This research has implications for portfolio managers and investors in managing their portfolio assets to be well diversified. In addition, this research adds to empirical research in the field of capital markets, especially Islamic capital markets related to financial market integration.

This study aims to examine the effect of internal bank factors and ESG performance on the problematic financing of Islamic banking in OIC countries. This study uses quantitative methods with panel data regression analysis techniques used to test the hypotheses proposed in the study. This study uses data sources of Islamic banks' financial reports taken from Bloomberg database. The results of this study indicate that partially and simultaneously all variables have a significant effect on non-performing financing (NPF). The variables of profitability (ROA), financing growth, and ESG Score show negative significant results which means these variables can reduce the risk of non-performing financing, while the variables of bank capital (CAR), bank provisions (FLP), and previous year's non-performing financing (NPFt-1) show positive significant results which means these variables can increase the risk of non-performing financing. The limitation in this study is that the sample used only consists of 50 Islamic banks in OIC countries. Despite these limitations, the results imply that bank management needs to pay attention to internal bank factors and ESG policies to minimize the risk of non-performing financing. This study contributes to the scientific literature on the relationship between bank internal policies and ESG policies on non-performing financing in Islamic banking in OIC countries..

The integration of digital technologies is transforming healthcare, with telemedicine emerging as a pivotal solution. However, its adoption remains uneven, particularly in developing countries. This study examines the factors influencing telemedicine adoption among healthcare professionals in Malaysia, with a specific focus on technology readiness and technology acceptance. The findings reveal that optimism and perceived ease of use significantly influence adoption intent, while perceived usefulness serves as a critical mediator. Additionally, age moderates these relationships, indicating that older healthcare professionals may demonstrate greater reluctance towards telemedicine adoption. By identifying the interplay between technological and demographic factors, this study provides valuable insights into the barriers and enablers of telemedicine adoption, contributing to a more targeted approach in facilitating digital healthcare integration, particularly in resource-constrained settings.

IntroductionEconomic turbulence remains a persistent challenge globally, as evidenced by historical crises such as the Great Depression, the 2007–2009 Global Financial Crisis, Brexit, and the COVID-19 pandemic. These events have underscored the necessity for resilient and ethically sound financial frameworks. Islamic finance has gained attention as a viable alternative financial system, potentially offering enhanced stability during periods of economic instability.ObjectivesThis study systematically reviews existing literature on the development and responses of Islamic finance during various economic disturbances. It aims to identify how Islamic financial institutions adapt their strategies, products, and services in response to crises, and highlight areas for future research.MethodThe systematic literature review method was used, analyzing 76 academic articles published between 2007 and 2023 from high-quality journals (Q1 and Q2) indexed in the Scopus database. Articles were carefully screened using defined inclusion and exclusion criteria to ensure relevance to economic crises and Islamic finance.ResultsFindings reveal that Islamic financial markets and Islamic banking were the predominant topics, demonstrating varied responses to economic shocks. Islamic banks, employing profit-loss sharing models, exhibited resilience during economic downturns, though inefficiencies in profitability and capitalization were noted. Islamic financial markets, characterized by ethical investments and low leverage, provided diversification advantages but remained vulnerable due to limited portfolio diversity. Additionally, Islamic social finance tools such as zakat and waqf were beneficial in supporting economic recovery, especially during the COVID-19 crisis.ImplicationsThe study suggests that governments and policymakers should promote profit-loss sharing models in Islamic banking and encourage greater diversification in Islamic financial markets to enhance resilience. Additionally, Islamic social finance should be further integrated into economic recovery strategies to mitigate crisis impacts.Originality/NoveltyThis research uniquely synthesizes insights into the adaptive responses of Islamic financial institutions across historical economic crises, addressing a significant knowledge gap in Islamic finance literature. By providing comprehensive future research directions, it contributes valuable guidance for scholars, practitioners, and policymakers aiming to develop sustainable and resilient financial systems.