EFFECT OF SHARIA COMPLIANCE ON SUSTAINABILITY REPORT DISCLOSURE ON JAKARTA ISLAMIC INDEX

Abstract

This study aimed to analyze the effect of Sharia compliance on sustainability report disclosure companies listed on the Jakarta Islamic Index (JII). The sample of this study was selected from as many as 30 companies using a purposive method with the criteria of being listed on the Jakarta Islamic Index, applying the principles of Sharia compliance, and publishing sustainability reports in 2022, whose reports can be downloaded through the company's official website. This research data comes from secondary data. The two indicators of Sharia compliance used are the ratio of interest-bearing debt to total assets and the ratio of non-halal income to total income. The hypothesis testing method used is simple regression analysis. This study's results indicate a negative and significant influence on one aspect of Sharia compliance with sustainability report disclosure. The ratio of non-halal income to total income has a significance value of less than 0.05.