ANALYSIS OF ETHICAL IDENTITY INDEX ON FINANCIAL PERFORMANCE OF SHARIA COMMERCIAL BANKS IN INDONESIA (CASE STUDY IN 2010 - 2018)

The Ethical Identity Index (EII) is a measure of ethical identity expressed by Haniffa and Hudaib in a 2007 study. The research measures the ethical value of Islamic banks in several other countries such as Malaysia, Asia, the Arabian Gulf and Indonesian. Ethical identity is then represented as company business, which is ethical identity as corporate ethics. When a company has good ethics or identity, it will form a good external relationship so that it will produce a positive relationship from external to the company. Then this relationship is tested by measuring the relationship of ethical identity disclosure to financial performance. This study then tries to examine the relationship of the influence of ethical identity as measured by EII on financial performance projected with Return on Equity (ROE). This study takes data from five sharia commercial banks in the period 2010-2018. The data used panel data with the method of analysis in the form of multiple linier regression. In addition to EII, the author appended the variables Intellectual Capital (IC) and Good Corporate Governance (GCG) as independent variables. The addition of the variables is an effort to minimize the appearance of bias in this study. The results showed that EII, IC and GCG simultaneously affected ROE financial performance with a determination coefficient of 0.6506. The partial test results show that EII and GCG have no effect on ROE financial performance, while IC has a significant positive effect on ROE financial performance. Keywords: Ethical Identity Index (EII); Intellectual Capital (IC); Good Corporate Governance (GCG); Financial Performance Return on Equity (ROE) &nbsp