The governance mechanism’s influence to fulfill Sharia criteria and the cash placement

• Sri Iswati, Ahmad Faisal Haq, Muslich Anshori Universitas Airlangga, Surabaya, Indonesia
• Moch. Edman Syarief Department of Accounting, Politeknik Negeri Bandung, Bandung, Indonesia

Palabras clave: Corporate Governance Mechanisms, Boards Of Commissioners.

Resumen

This study aims to determine the effect of corporate governance mechanisms on the fulfillment of Sharia stock criteria in companies incorporated in the ISSI as well as on the tendency of corporate cash arrangement at financial institutions via comparative quantitative research methods. The result shows that there is a significant influence on the board of directors on the placement of cash in conventional banks. In conclusion, the board of commissioners should have the same views as the representatives of the owners to place the company's cash on a non-usury-based financial institution.