Peer-Reviewed Publication (UTD24/FT50):

Biodiversity Entrepreneurship     (with Sean Cao, Andrew Karolyi, and Frank Hui Xu)   

Review of Finance (FT50), Volume 30, Issue 1, January 2026, Special Issue on Biodiversity Finance

[DOI: https://doi.org/10.1093/rof/rfaf062] [RF advance article: 27 October 2025] [SSRN version]

• Presentations: University of Cambridge (Oct 2024 Review of Finance Research Workshop: Biodiversity Finance & Natural Resource Finance; May 2025 Review of Finance Biodiversity Finance Conference at the Royal Society of London), SUNY Binghamton, Rice University, Houston University, University of Maryland, Lancaster University.      

Abstract: We study an emerging class of start-up organizations focused on biodiversity conservation and the challenges they face in financing these ventures. By fine-tuning a large language model (LLM), we identify 630 biodiversity-linked start-ups in PitchBook and compare their financing dynamics with those of other ventures. Biodiversity start-ups raise less capital but attract a broader coalition of investors, including not only venture capitalists (“value investors”) but also mission-aligned impact funds and public institutions (“values investors”). Values investors provide incremental capital rather than substituting value investors, but funding gaps persist. We show biodiversity-linked start-ups use social media (Twitter) activity to help connect with value investors. Our findings can inform policy and practice for mobilizing private capital toward biodiversity preservation, emphasizing hybrid financing models and strategic communication.

Working Papers:

Understanding Green Returns in Global Equity Markets: The Role of Representation Bias    

(with Andrew Karolyi and Ying Wu) 

• R&R, Management Science (UTD24 & FT50)

• This paper subsumes an earlier working paper, “Understanding the Global Equity Greenium.” 

• Presentations: AFA (2024),  Baruch Climate Finance and ESG Conference (2024),  FMA (2023),  ESSEC - Amundi Chair on Asset & Risk Management Webinar (2024), Cornell Finance Faculty Brown Bag (2023). 

Abstract: Do green stocks outperform brown ones globally? By examining over 52,000 stocks across 46 countries, we provide new global evidence on how corporate environmental performance influences stock returns. We highlight how the data representation “bias” or uneven coverage of environmental scores – the E score of ESG ratings – for firms across the global stock universe can distort inferences of green returns. We affirm strong coverage of U.S. stocks in the MSCI ESG Ratings data and positive realized green-minus-brown (GMB) return spreads in the U.S. (2012-2021), but uncover significant underrepresentation of ESG data for non-U.S. stocks and no evidence of realized GMB returns outside the U.S. By applying a cost-effective James-Stein style Bayesian shrinkage estimation methodology to correct for underrepresentation biases, we find that realized GMB returns of 38 basis points (bps) per month emerge in developed ex-U.S. markets, comparable to 41 bps in the U.S. market. Industry- and country-level analyses show that low-coverage sectors and markets drive the revised inferences. However, we find insignificant GMB returns in emerging markets during the same observation period, even after correcting for severe underrepresentation bias in those markets. Our weak results for emerging markets cannot be explained by sustainable investing models applicable to the U.S. or developed markets. This study underscores the issue of international data representation in sustainability research and the applicability of theories in sustainable investing.

Work in Progress:

Projects aligned with research interests