Abstract: Taking the annual data of 8,140 listed companies in Shanghai's and Shenzhen's A-share markets as examples, this paper studies the relationship between financial pressure, public welfare donation and capital cost of enterprise. Results show that there is a significantly negative correlation between the scale of public welfare donation and the capital cost of enterprise, that is, the lager the scale ofdonation, the lower the capital cost; In addition, when the financial pressure is low, the government will be more supportive of public welfare donation, which will playa greater role in reducing capital cost of enterprise.