Does CSR Have the Effects of Injury Insurance? Based on the Event Study of China Listed Companies with Violations

Prior studies showed that corporate social responsibility in developed countries could reduce the losses when negative events happened. Corporate social responsibility had the effects of injury insurance. Using a sample of listed companies in china that were denounced by security regulators, researches whether earlier corporate social responsibility acts can reduce losses when happened negative events on the first time. The empirical results suggest that the previous donation acts can bring down the losses when happened negative events, also the persistence of donation, the amount of donation and the differences of enterprise nature can influence the results. This essay shows that corporate social responsibility in china really has injury insurance effects. This paper extends the study on the relations between enterprise economic performance and corporate social responsibility. And companies in china that often encounters negative events can get some inspirations from this article.