Cuifeng Wu
ABSTRACT
With the development of social economy, enterprises have regarded the fulfillment of social responsibility as a way to enhance the loyalty of employees, increase the confidence of investors, and improve the relationship between enterprises and the government. Charitable donation is one of the manifestations of social responsibility. Is corporate giving related to financial performance? This paper wants to study the impact of corporate donations on financial performance from 2008 to 2019, and to evaluate the accounting performance after the donations. Then using the event study method to calculate the excess returns of enterprises that made donations in the 2020 covid-19 epidemic, and the market performance of enterprises after donation was evaluated. It is concluded that corporate donation positively affects corporate performance and stock excess returns. Finally, this paper puts forward suggestions from three aspects: the attitude of enterprises towards donation, the establishment of an environment to encourage donation, and the improvement of the domestic donation system.
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