MIMETIC ISOMORPHISM AS A REASON FOR PREPARING SUSTAINABILITY REPORT

Abstract

Abstract: Mimetic Isomorphism as a Reason for Preparing Sustainability Report. This study aims to examine whether companies in Indonesia make sustainability reports because of mimetic isomorphism and whether shareholders appreciate the sustainability report. Logistic regression and permanent regression are used as a method for non-financial companies listed in 2014-2016 on the Indonesia Stock Exchange. This research shows that when companies in Indonesia produce sustainability reports based on mimetic isomorphism, investors respond carefully. They are meticulous in responding to every available information. Therefore, companies must show their concern for CSR with the quality of their sustainability reports.

Keywords

• firm value
• mimetic isomorphism
• sustainability report