The Effect of Profitability, Liquidity, and Islamic Social Reporting on Zakat Expenditure with Total Assets as a Moderating Variable (Study on Islamic Commercial Banks in Indonesia for the 2015–2024 Period)

Abstrak

This study aims to analyze the effect of profitability, liquidity, and Islamic Social Reporting (ISR) on zakat expenditure in Islamic Commercial Banks (BUS) in Indonesia during the 2015–2024 period, with total assets as a moderating variable. This research employed a quantitative approach using SEM-PLS analysis. The sample consisted of eight Islamic Commercial Banks selected through purposive sampling techniques. The hypothesis testing results indicate that profitability and liquidity do not significantly affect corporate zakat expenditure. In contrast, Islamic Social Reporting has a positive and significant effect on zakat expenditure, indicating that transparency in Islamic social disclosure encourages corporate commitment to zakat payments. Meanwhile, total assets were found to weaken the relationship between profitability, liquidity, and ISR on zakat expenditure. This finding suggests that banks with larger assets tend to prioritize operational stability and commercial interests over optimizing their Islamic social functions through zakat distribution.