Corporate philanthropic giving and nature of stock market reaction: Evidence from China

This study examines whether enterprises can obtain abnormal returns through philanthropic giving during public health emergencies, such as the COVID-19 crisis, by using an event study approach to conduct an empirical analysis. The results show that if enterprises participate in philanthropic giving during the COVID-19 crisis, they can obtain abnormal returns in the stock market. The extent of this market reaction is directly proportional to the level of philanthropic giving, and it is more significant for private enterprises, enterprises in regions that are more affected by the epidemic, enterprises in social responsibility sensitive industries, and enterprises with more timely donations.