Uncertainty Economic Policy, Corporate Social Responsibility and Share Volatility During the Covid-19 Pandemic

Abstract

This article aims to explain the effect of the Index of Economic Policy Uncertainty (EPU) and Corporate Social Responsibility (CSR) on stock volatility, using control variables: Debt to Equity Ratio, Debt To Asset Ratio, and Earnings per share. The expected findings are a positive relationship between EPU and CSR on Stock Volatility, also profitable ratios and leverage ratios that mediate a positive relationship of EPU and stock volatility, using panel data regression analysis. This study explains whether the increase or decrease in sales and profits of cigarette and liquor products, before and after the pandemic, has a correlation with consumer spending on cigarettes and liquor, in the midst of the Covid-19 pandemic. Researchers hope that this research can provide investors and practitioners with an understanding to better understand individual investor interest and consumer behavior towards cigarette and liquor companies in the midst of the Covid 19 pandemic.

Keywords: economic policy uncertainty; corporate social responsibility; stock volatility; covid 19; cigarette and liquor companies