MIMETIC ISOMORPHISM AS A REASON FOR PREPARING SUSTAINABILITY REPORT

Abstract

This study aims to examine whether companies in Indonesia make sustainability reports because of mimetic isomorphism andwhether shareholders appreciate the sustainability report. Logistic regres-sion and permanent regression are used as a method for nonfinancial companies listed in 2014-2016 on the Indonesia Stock Exchange. This re-search shows that when companies in Indonesia produce sustainabilityreports 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