Can Corporate Donations Redeem The Risk Of Stock Price Collapse?

Stock price collapse usually refers to the phenomenon that the stock price experiences a sharp fall in a short period.Stock price collapse is fatal to enterprises.Therefore,when the stock price of enterprises falls sharply and the risk of stock price collapse rises,enterprises have motivation to recover the risk of stock price collapse.There are two opposite views.One view holds that social responsibility is to cover up its negative information and is a "self-interest tool",which will intensify the risk of stock price collapse.Another view is that the performance and disclosure of social responsibility reports by enterprises can form a reputation effect and an insurance effect,thereby reducing the risk of stock price collapse.This paper studies the recovery effect of corporate social responsibility on the risk of stock price collapse,and specifically analyzes whether enterprises that have faced the risk of stock price collapse will take the opportunity of major crisis period(such as the covid-19 epidemic period)to recover the risk of stock price collapse by performing social responsibility? The market reaction and the recovery effect of fulfilling social responsibility?The persistence of the recovery effect and whether the recovery effect has brought more impact to the enterprise? And the realization path of the retrieval effect.Among them,the corporate performance of social responsibility is obtained through the we media platform.The retrieval effect is explored through the combination of event research and case analysis.Ten trading days before and after the donation date are selected as the time window period to calculate the cumulative excess return rate of the enterprise.Stata is used to calculate the risk of stock price collapse,and the case enterprises are compared with representative companies in the same industry horizontally and vertically to further verify the recovery effect of corporate social responsibility on the risk of stock price collapse.The research finds that if the enterprise faces the risk of stock price collapse,it will have a recovery effect on the collapse risk,and through user attention and improving the quality of information disclosure.The research of this paper provides a theoretical reference for companies facing the risk of stock price collapse,and also provides some idea for the follow-up study.