Sharia Accounting Decision Making Model Moderated by Company Culture

Presenters: Arzal Syah , Aidil Ar Rasyid , Avrilia Jasnur , Dini Nurpratiwi
Affiliation: IAIN Palopo
Room: 2 (Online)

ICIES News- In an insightful presentation at the 4th International Conference on Islamic Economics Studies (ICIES) 2024, researchers Arzal Syah, Aidil Ar Rasyid, Avrilia Jasnur, and Dini Nurpratiwi from IAIN Palopo discussed their study on the “Sharia Accounting Decision Making Model Moderated by Company Culture.” The presentation was held online in Room 2, addressing the evolving landscape of the Islamic finance industry within the context of globalization.

The research emphasized the rapid development of the Islamic finance industry, which has created new opportunities for businesses to align their operations with Sharia principles. The study sought to understand how cognitive biases and company culture impact decision-making processes in Sharia accounting.

Key findings from the research revealed that the Cognitive Bias Variable does not significantly influence Sharia accounting decision-making. This outcome is attributed to the firm and clear principles of Sharia accounting, which guide practitioners in adhering to moral and ethical standards rooted in Sharia law. The researchers explained that these principles serve as a strong framework, ensuring that decisions in Sharia accounting are made with a high level of integrity, free from the distortions typically introduced by cognitive biases.

On the other hand, the study found that the Corporate Culture Variable has a significant impact on Sharia accounting decision-making. A strong corporate culture that emphasizes values such as integrity, social responsibility, and strict adherence to Sharia norms was shown to enhance consistency and compliance in Sharia accounting practices. This finding underscores the critical role of corporate culture in shaping how organizations implement Sharia accounting, suggesting that the right cultural environment can foster better alignment with Islamic financial principles.

The researchers concluded that their findings contribute valuable insights to the strategies for improving Islamic finance and promoting sustainable development. By applying the concept of Sharia accounting decision-making in the context of cognitive biases, moderated by corporate culture, companies can enhance their adherence to Sharia principles and ensure more ethical and responsible business practices.

This presentation highlighted the importance of fostering a corporate culture that aligns with Sharia values, providing a pathway for businesses to successfully navigate the complexities of the modern financial landscape while staying true to Islamic principles.

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