According to article 15 of the 2007 investment law no.25, all businesses in Indonesia are required to practice corporate social and environmental responsibility. However, compared to other Asian countries, Indonesia may out have implemented CSR as successfully. The COVID 19 pandemic has created new challenges for all aspects of life in the world because it seriously impeded all facets of existence worldwide. Many businesses have had to reevaluate their plans for carrying out their social responsibility, or CSR, in light of this pandemic. The study aims to examine the moderating effects of CSR expenses on Indonesia's LQ45 firms systematic risk and COVID 19 pandemic, as well as the moderating effects of CSR awarding on Indonesia's LQ45 firms systematic risk and company's CSR expenses.
This study examines 40 companies during the period of 2015 to 2020 using a quantitative approach and panel data analysis. The study discovered that CSR expenses carry out negative signals about firm systematic risk, although these signals are not empirically significant. The COVID 19 pandemic has a positive signal towards firm systematic risk, but it is not empirically significant. This signal may suggest that COVID 19 increases the firm systematic risk (BETA). Firm systematic risk was positively influenced by CSRAWD. Additionally, CSR awarding lessens the negative impact of CSR expense on firm systematic risk. CSR expense may reduce the positive effect of the COVID 19 pandemic on firm systematic risk, but this is not empirically significant.