Market Reactions to Platform Companies’ Social Responsibility in the Gig Economy: Evidence from JD and Meituan’s Rider Welfare Policies”

This study employs event study methodology to analyze capital market reactions to rider welfare policies implemented by JD and Meituan, two major Chinese platform companies. Focusing on the strategic announcements made on February 19, 2025, the research reveals divergent market responses: JD’s pioneering initiative to fully cover social insurance for riders initially triggered negative abnormal returns (-14.36% on event day), followed by an 18.3% recovery, suggesting market recognition of its ESG leadership. Conversely, Meituan’s defensive policy adjustment resulted in sustained negative cumulative abnormal returns (CAR=-6.65%), reflecting investor concerns about cost pressures and passive compliance. The findings highlight the financial implications of CSR in platform economies, demonstrating how proactive social responsibility generates ESG premiums while reactive measures incur market penalties. The study further identifies systemic challenges in China’s gig economy, including the “immediate income vs long-term security” dilemma for riders and the need for tripartite cost-sharing mechanisms. These insights contribute to understanding the evolving relationship between platform governance, labor rights protection, and sustainable business models in digital economies.