Company value is investors' perception of the company which is often linked to share prices. The growth of Islamic banking is increasing, the implementation of Islamic Corporate Governance (ICG) has become an obligation. ICG implementation aims to overcome the emergence of various risks and problems. Apart from these goals, ICG is also the main focus for making banking superior and highly competitive. The results in this study indicate that Islamic corporate governance has a positive effect on firm value, and earnings management has a positive effect on firm value. The conclusion in this study is H1 which states that Islamic corporate governance has a negative and significant effect on accepted firm value and H2 states that earnings management has a positive and significant effect on accepted firm value and H3 which states simultaneously that both variables, namely Islamic corporate governance and earnings management can have an effect to accepted firm value.

Islamic Corporate Governance, Earnings Management, Company Value

Abu-Tapanjeh, A. M. (2009). Corporate governance from the Islamic perspective: A comparative analysis with OECD principles. Critical Perspectives on Accounting, 20(5), 556–567. https://doi.org/10.1016/j.cpa.2007.12.004

Beekun, R. I. (2019). ISLAMIC BUSINESS ETHICS. In Islamic Business Ethics (pp. 1–80). International Institute of Islamic Thought. https://doi.org/10.2307/j.ctvk8w1zv.4

Choudhury, M. A., & Hoque, M. Z. (2006). Corporate governance in Islamic perspective. In Corporate Governance (Vol. 6, Issue 2). https://doi.org/10.1108/14720700610655132

Davis, J. H., Schoorman, F. D., & Donaldson, L. (1997). Toward a stewardship theory of management. Academy of Management Review, 22(1). https://doi.org/10.5465/AMR.1997.9707180258

Demise, N. (2006). OECD principles of corporate governance. In Corporate Governance in Japan: From the Viewpoints of Management, Accounting, and the Market. https://doi.org/10.1007/978-4-431-30920-8_10

Dusuki, A. W. (2008). What Does Islam Say about Corporate Social Responsibility ? Review of Islamic Economics, 12(1).

Freeman, R. E. (2015). Strategic management: A stakeholder approach. In Strategic Management: A Stakeholder Approach. https://doi.org/10.1017/CBO9781139192675

Hasan, Z. (2009). Corporate Governance: Western and Islamic Perspectives. International Review of Business Research Papers, 5(1), 277–293. http://www.bizresearchpapers.com/attachments_2009_01_13/23.Zulkipli.pdf

Hassan, A., & Syafri Harahap, S. (2010). Exploring corporate social responsibility disclosure: the case of Islamic banks. International Journal of Islamic and Middle Eastern Finance and Management, 3(3). https://doi.org/10.1108/17538391011072417

Iqbal, Z., & Mirakhor, A. (2004). Stakeholders Model of Governance in Islamic Economic System. Islamic Economic Studies, 11(2 (March 2004)).

Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4). https://doi.org/10.1016/0304-405X(76)90026-X

Mannan, M. A. (1983). Islamic Economics, Theory and Practice. Journal of Research in Islamic Economics, 1(1), 49–50.

Reitz, H. J., Pfeffer, J., & Salancik, G. R. (1979). The External Control of Organizations: A Resource Dependence Perspective. The Academy of Management Review, 4(2). https://doi.org/10.2307/257794

Rice, G. (1999). Islamic ethics and the implications for business. Journal of Business Ethics, 18(4). https://doi.org/10.1023/A:1005711414306

Sadek, D. M., Rahim, K. A., & Abas, Z. (2018). Islamic Corporate Governance In Islamic Financial Institutions. International Journal of Academic Research in Business and Social Sciences, 8(4). https://doi.org/10.6007/ijarbss/v8-i4/3993

Shleifer, A., & Vishny, R. W. (1997). A survey of corporate governance. Journal of Finance, 52(2). https://doi.org/10.1111/j.1540-6261.1997.tb04820.x