Abstract：Using a sample of Chinese listed companies that were denounced by security regulators, this paper researches on whether enterprise donation in our country has the insurance effects, namely, whether donation acts can reduce the loss of shareholder when scandals happened. The empirical results suggest that when companies are denounced, the companies with donation have higher cumulative abnormal return compared to the nondonation previously; the more amount of donation, the higher of cumulative abnormal return will be; and the company donation acts can reduce the wealth loss of shareholder, i.e. it has the insurance effects in our country.
2013, Vol. 10 
