The Postgraduate Program of Faculty of Economics and Business, and Faculty of Accounting, University of Indonesia, had held an open session of Doctoral Promotion of Agus Munandar, which took place in the Postgraduate Auditorium, Postgraduate Building, on Friday 31 January 2020.

The Doctoral Promotion Session was chaired by Prof. Nachrowi Djalal Nachrowi, Ph.D., with his supervisor, Prof. Akhmad Sakhroza, Ph.D. (Promoter), Dr. Dwi Martani (The main Co-Promoter one), and Dodik Siswantoro, M.Sc., Acc (The Co-Promoter assistant). As the testing team, Hilda Rossieta, Ph.D. (Chief Examiner), Dr. Chaerul D. Djakman, Miranti Kartika Dewi, Ph.D., Rahmatina A. Kasri, Ph.D., and Dr. Ari Pratiwi.

The dissertation is entitled “The Effect of Zakat, Corporate Reputation, and Zakat Regulation as a Tax Reduction on Financial Performance: Cross-Country Analysis”. The study aims to identify the direct impact of zakat on the company’s financial performance. This study also examines the indirect effect of zakat on corporate financial performance through corporate reputation. This study also examines the role of moderation in zakat regulation as a tax deduction on the relationship of zakat and the company’s financial performance.

“This research provides several contributions; such as examining the direct impact of zakat on corporate financial performance, analyzing the influence of zakat on financial performance through corporate reputation, analyzing companies in various countries that have diverse regulations,” Agus Munandar explained.

He continued, besides, the study also examined the role of moderation in zakat regulation as a tax deduction on the relationship between zakat and financial performance, and using more comprehensive financial performance measures compared to previous studies, which used accounting performance measures, market performance, and sustainable financial performance (going concern of financial performance).

The initial sample of this study consisted of companies in Indonesia, Kuwait, Saudi Arabia, Sudan, Malaysia, Qatar, and Pakistan that were registered with Thompson Reuters in the 2007-2018. In contrast to previous research, this study analyzes cross-country (cross-country) and considers zakat regulation as a tax deduction.

Due to the small number of samples and observations in Indonesia, Qatar, Sudan and Pakistan, this study focuses on companies in Malaysia, Kuwait and Saudi Arabia. Nevertheless, the sample has represented zakat regulation as a tax deduction and zakat regulation as a deduction for taxable income.

The number of final observations in this study is 709 firms. The results showed that zakat has a significant positive impact on accounting performance which is projected using ROE (Return on Equity) and ROA (Return on Assets), and market performance which is proxied using PBV (Price Book Value).

“Regarding the impact of zakat regulation as a deduction of zakat, the results of the study indicate that companies (mandatory zakat) do not pay attention to regulatory factors either as a deduction from taxable income or as a reduction of tax debt,” he concluded.

The open session of doctoral promotion has decided Agus Munandar with Cumlaude title and succeeded in getting his Doctorate in Accounting. Congratulations to Dr. Agus Munandar!


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