The perceptions of Indonesian Islamic commercial bankers and depositors on the qualitative characteristics of financial reporting

Abstract

This study aims to ensure the effectiveness and quality of the financial reporting of the Islamic Indonesian Banking by operationalising the qualitative characteristics of the financial reporting. The assessing used five factors which are understandability, relevancy, timeliness, comparability, and completeness and faithfulness information factor to cover the criteria. The researcher used questionnaire since it is the best choice due to achieve the research objective of the study and to prove either to accept or reject the six hypotheses from seeking the respondents’ opinions as the target is bankers and depositors. The research results show that the qualitative characteristics financial reporting reflected by average significant 0.511. Hence, all of the hypotheses are accepted because of both bankers and depositors agreed that the qualitative characteristics of financial reporting could help the understanding level of the user and at the same time it keeps the effectiveness and quality of financial reporting. This is important because since considering not all the users would be able to understand the financial report. However, there must be improvement for future research based on this issue such as the various participants with large number, extending the number of questions that could make more cover detail the criteria and adding the relative of theory such as agency theory.