Corporate donations represent an important form of fulfilling corporate social responsibility. Presently, the academic community has not reached a consistent conclusion regarding the relationship between corporate donations and corporate financial performance or the stock market. This paper examines the financial indicators and corporate donation data of A-share listed companies on the Shanghai and Shenzhen stock exchanges in China from 2008 to 2020. Employing propensity score matching and ordinary least squares regression methods, it aims to analyze the impact of corporate donations on corporate financial indicators and the stock market. The study reveals two main findings: First, during the pandemic, corporate donations have a significantly positive effect on corporate financial performance and the stock market. Second, corporate donations do not have a significantly positive effect on corporate financial performance and the stock market. This paper further investigates the conclusions: First, during the COVID-19 pandemic, the Chinese government intensified its policies on corporate donations. Second, corporate donations incur excessive costs. Third, the return cycle of corporate donations is too long. Fourth, there is a phenomenon of blind donations by companies. Based on these findings, this paper proposes recommendations for companies: First, enterprises should allocate internal resources reasonably. Second, enterprises should establish a good corporate reputation and image. Third, enterprises should establish a comprehensive cost management system. This paper provides insights into decision-making regarding corporate social donations.