Factors Influencing Corporate Zakat Expenditure (case Study of Islamic Banks in Indonesia Period 2015-2017)

This study aims to see an overview of the rate of Return on Assets (ROA), Return on Equity (ROE) and Firm Size and its influence on corporate zakat in Islamic Banks in Indonesia period 2015-2017. The method used in this research is causality method with quantitative approach. The population of this study is Islamic Banks registered in Bank Indonesia (BI) with a total sample of five Islamic Banks during three year period. The data was analyzed using panel data regression. The dependent variable used in this study is the corporate zakat expenditure. Furthermore, the independent variables are Return on Assets (ROA), Return on Equity (ROE) and Firm Size. The results indicated that corporate zakat expenditure on Islamic Banks has increased every year, while ROA and ROE has fluctuating growth. ROA tends to icrease, but ROE tends to decrease. Based on the t-test results show that ROA does not have effect on the corporate zakat expenditure while ROE and Firm Size have a positive and significant effect on corporate zakat expenditure. Thus it can be concluded that when ROA increases, it does not affect the corporate zakat and when ROE and firm size increases, it will increase the corporate zakat on Islamic Banks.