Analysis of Corporate Governance Factors in Moderating the Relationship Between Islamic Accounting and Social Responsibility

Abstract

The increasing demand for transparency and accountability has encouraged Sharia-based companies to implement accounting practices that emphasize not only financial performance but also social responsibility. However, the implementation of Islamic accounting has not always been accompanied by optimal quality of social responsibility disclosure. Variations in the level of Islamic Social Reporting (ISR) disclosure indicate that other factors influence this relationship, one of which is corporate governance. This study aims to analyze the effect of Islamic accounting on social responsibility and examine the role of corporate governance as a moderating variable in this relationship. The study adopts a quantitative approach using a survey method as the primary data collection technique from respondents who meet the research sample criteria. Data were analyzed using moderated regression analysis (MRA) to examine both the direct effect of Islamic accounting on social responsibility and the moderating effect of corporate governance on this relationship. This study is expected to provide empirical evidence regarding the importance of corporate governance in strengthening the implementation of Islamic accounting to enhance the quality of corporate social responsibility. The findings are also expected to enrich the literature on Islamic accounting while providing insights for companies and regulators in strengthening governance practices that promote transparency, accountability, and sustainability in Sharia-based enterprises.