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.

This paper discusses two methods of measuring net foreign assets(NFA): directly using the financial account and indirectly using the current account. The former method is found to be more accurate than the latter method. The paper also includes a detailed discussion of the valuation methodology. The results show that China's NFA are much lower than the cumulative current account surplus or the cumulative foreign exchange reserves. This leads to an underestimation of growth in foreign direct investment and an overestimation of the capacity of foreign exchange reserves to cope with possible withdrawals. Therefore, the Chinese Government should pay more attention to valuation issues to obtain more accurate measurement of NF A. Meanwhile, the Chinese monetary authority should relax its control on the foreign exchange settlement system, allow the private sector to hold a certain amount of foreign exchange, and encourage foreign assets to be denominated in RMB to solve structural problems, including entity and currency mismatch. Copyright (c) 2010 The Author China & World Economy (c) 2010 Institute of World Economics and Politics, Chinese Academy of Social Sciences.

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