The Effect of Financial Statement Accountability and Transparency on Members’ Trust at BMT Al Yaman Bangorejo, Banyuwangi

Abstract

This study examines the effect of financial statement accountability and transparency on member trust at Baitul Maal wat Tamwil (BMT) Al Yaman Bangorejo. The study responds to the importance of credible financial reporting in member-based Islamic microfinance institutions, where members entrust funds to managers and require reliable information for monitoring and decision making. A quantitative associative approach was applied. Data were collected through questionnaires from 43 active members of BMT Al Yaman Bangorejo and analyzed using validity and reliability tests, classical assumption tests, multiple linear regression, t-test, F-test, and coefficient of determination. The results show that accountability has a positive and significant effect on member trust, with a regression coefficient of 0.522, t = 3.053, and p = 0.004. Transparency also has a positive and significant effect, with a coefficient of 0.408, t = 2.245, and p = 0.030. Simultaneously, accountability and transparency significantly affect member trust, with F = 67.347 and p < 0.001. The coefficient of determination is 0.771, indicating that 77.1% of the variation in member trust is explained jointly by the two predictors. The findings indicate that accountable reporting reduces information asymmetry, while transparent disclosure provides a positive signal regarding institutional integrity and openness. The study contributes empirical evidence from a member-based Islamic microfinance institution and highlights the need to integrate accountability and transparency as complementary governance mechanisms.