Determinants of Digital Financial Reporting Quality in Islamic Philanthropic Institutions

Ahmad Masyhuri; Andi Azwan; Hendra Kurniawan

Authors

Ahmad Masyhuri Department of Accounting, Universitas Islam Negeri Maulana Malik Ibrahim Malang, Malang, Indonesia
Andi Azwan Department of Accounting, Universitas Islam Negeri Maulana Malik Ibrahim Malang, Malang, Indonesia
Hendra Kurniawan Department of Accounting, Universitas Islam Negeri Maulana Malik Ibrahim Malang, Malang, Indonesia

Keywords:

digital financial reporting quality, islamic philanthropic institutions, information technology utilization, governance, transparency

Abstract

The rapid digital transformation of Islamic philanthropic institutions has increased the importance of producing high-quality digital financial reports that promote transparency, accountability, and stakeholder trust. However, empirical evidence regarding the determinants of Digital Financial Reporting Quality (DFRQ) remains limited, particularly within organizations managing zakat, infaq, sadaqah, and waqf (ZISWAF) funds. This study aims to examine the determinants of DFRQ by developing an integrated research model that incorporates information technology utilization, human resource competence, internal control, governance, compliance with Sharia accounting standards, transparency, and accountability. A quantitative explanatory research design was employed using survey data collected from 286 respondents representing Islamic philanthropic institutions in Indonesia, including BAZNAS, LAZNAS, LAZ, and waqf management organizations. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4. The findings reveal that all proposed determinants exert positive and significant effects on DFRQ. Governance, information technology utilization, and transparency emerged as the most influential factors, while human resource competence, internal control, accountability, and compliance with Sharia accounting standards also contributed significantly to improving reporting quality. The study demonstrates that DFRQ is achieved through the integration of organizational capabilities, technological readiness, governance effectiveness, and regulatory compliance rather than through digital technology alone. These findings contribute to the advancement of Islamic accounting and governance literature while providing practical guidance for strengthening financial transparency, institutional accountability, and public trust in Islamic philanthropic institutions operating in the digital era.

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