Can corporate social responsibility protect firm value during the COVID-19 pandemic?

•Engaging in CSR activities can increase stock returns of hospitality firms during the COVID-19 pandemic.•The positive effect of CSR on stock returns takes place in five days.•Community-related CSR has a stronger and quicker effect on stock returns than CSR toward customers and employees.•Publicly traded hospitality firms can invest in CSR during a pandemic to protect their firm value.•Hospitality firms’ historical CSR performance influences the effectiveness of CSR investment during the pandemic. The novel coronavirus (COVID-19) pandemic has caused a significant decline in the stock market worldwide, and hospitality companies are experiencing serious financial problems. Protecting and preserving firm value is a critical way of helping hospitality companies survive the crisis. The influence of corporate social responsibility (CSR) on firm value has been widely investigated. However, little is known about the stock price movement following CSR activity adoption during an industrial crisis. Using event study and difference-in-difference method, this study reveals that engaging in CSR activities can increase the stock returns and stakeholder attention of hospitality firms during the pandemic. Community-related CSR has a stronger and more immediate effect on stock returns than customer- and employee-related CSR. Results also indicate that hospitality firms that pursue improved stock market performance during a pandemic can invest in CSR to protect communities, customers, and employees for attracting further stakeholder attention.