Research statement (download)

Working papers

Biodiversity Regulatory Risk and Firm Investment - Job market paper (download)

 I study the effect of biodiversity regulatory risk on the investment level of U.S. public firms. I first construct a panel dataset that includes firm-level accounting and biodiversity data over the period from 2010 to 2022. Panel regressions results indicate a negative and significant association between biodiversity regulatory risk and firm investment over the period from 2010 to 2022. Using the ESA revisions complaint of 2019 as a natural experiment, I then estimate a standard difference-in-differences model to identify the causal impact of increased uncertainty about the future stringency of biodiversity regulation on firm investment. I find a negative effect that is both statistically significant and economically sizable for firms operating in industries highly exposed to biodiversity risks. The decline in investment appears to be driven by both the industry’s proximity to biodiversity-sensitive areas and the relevance of biogenic carbon emissions. The effect does not differ between firms discussing and omitting biodiversity regulatory risks in their 10-K annual reports. Finally, the investment decline is not accompanied by a change in the overall capital allocation efficiency of the firm.

Corporate Green Bonds and Asymmetric Information (R&R at the International Review of Financial Analysis, check current status here) (download)

This paper investigates whether corporate green bond announcements mitigate adverse selection in equity markets. Using a staggered difference-indifferences framework, I compare changes in information asymmetry—proxied by bid–ask spreads—between green bond and conventional bond issuers. The results show that the effect mainly depends on firms’ climate-risk materiality. For low climate-risk firms, both self-labeled and CBI-aligned green bond announcements increase bid–ask spreads. By contrast, for high climate-risk firms, spreads remain stable after self-labeled announcements and decline after CBI-aligned announcements. Moreover, these changes in information asymmetry appear to coincide with shifts in firm value. Overall, the findings support the signaling role—albeit a nuanced one—of corporate green bonds in conveying environmental commitments, while also underscoring unintended consequences for market information efficiency.

Climate, Caps, and Credit Access (with Alejandro Becerra-Fajardo)

Financial inclusion is promoted because of its potential to reduce poverty and expand opportunity. However, despite technological advances, regulatory interest rate caps remain a key barrier, often restricting credit for high-risk borrowers such as low-income individuals or small and medium-sized enterprises (SMEs). This study examines how interest rate caps limit access to SME credit in the context of climate shocks, when flexible financing is needed most. Using a triple difference-in-differences design, the paper highlights the interaction between financial regulation and climate risk, underscoring the need for policies that balance consumer protection with climate change resilience.

Work in progress

Natural Disasters Experience and Green Financial Behavior (with Guillermo Mateu)

Presentations

2025

International Conference of the French Finance Association (AFFI), Dijon, France

Research Seminar on Management Sciences, Vienna University of Economics and Business, Austria

2024

Research Seminar on Sustainable Finance and Market Efficiency, University of Valencia, Spain

Research Seminar on Finance, Governance and CSR, Burgundy School of Business, France