Organizational culture, financial reporting quality, and good governance: Evidence from Islamic financial institutions
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Peny Cahaya Azwari 
, Naz’aina, Qadariah Barkah, Ayke Nuraliati, Ahmad Taufik, Mulyani Rizki, Ninik Mulyani
This work is licensed under a Creative Commons Attribution 4.0 International License.
Abstract
This study aimed to verify the magnitude of the influence of organizational culture on the quality of financial reporting and its impact on good governance in zakat bodies and institutions in Indonesia. The magnitude of the gap between the potential and realization of zakat accumulation due to not yet growing awareness about the benefits of zakat and the lack of public trust in the institution of zakat tended to surrender their own zakat directly (Subiyanto, 2014; Zuraya, 2013; Jahar, 2010). The study was in the form of explanatory research using primary data and a questionnaire, as a research instrument, with regression analysis tools and unit analysis in zakat agencies and institutions in Indonesia. The results showed that organizational culture had a significant effect on the quality of financial reporting and good governance in the medium and low categories, the quality of financial reporting had a significant effect on the good governance in the low category, and the organizational culture had an indirect effect on good governance in low quality on financial reporting.
Keywords: Financial Reporting Quality, Good Governance, Zakat, Jakarta, West Java, Organizational Culture
Authors’ individual contribution: Conceptualization — P.C.A. and N.; Methodology — Q.B. and A.N.; Resources — P.C.A., N., and Q.B.; Formal Analysis — P.C.A. and Q.B.; Validation — A.T. and M.R.; Writing — Original Draft — P.C.A. and N.; Writing — Review & Editing — P.C.A. and Q.B.; Supervision — N. and N.M.; Project Administration — P.C.A., N., and Q.B.
Declaration of conflicting interests: The Authors declare that there is no conflict of interest.
JEL Classification: G0, G2, H0
Received: 06.08.2022
Accepted: 16.06.2023
Published online: 19.06.2023
How to cite this paper: Azwari, P. C., Naz’aina, Barkah, Q., Nuraliati, A., Taufik, A., Rizki, M., & Mulyani, N. (2023). Organizational culture, financial reporting quality, and good governance: Evidence from Islamic financial institutions. Corporate Governance and Organizational Behavior Review, 7(3), 131–143. https://doi.org/10.22495/cgobrv7i3p11
