Three essays on sustainable finance

This thesis consists of three papers on sustainable finance. The key goals are: (1) to identify the economic and financial consequences of environmental and social (E\&S) risks, and (2) to examine the economic factors and frictions that drive economic agents to internalize E&S issues and corporate sustainability. The first paper, "Do Health Risks Shape Firm Boundaries?", studies whether pollution-induced health risks affect the corporate make-or-buy decision. The empirical design builds on the United States Report on Carcinogens that officially recognizes cancer risks, which allows me to identify firms that are exposed to increased health risks in the form of cancer risks. The main finding is that the official recognition of cancer risks leads firms to lower in-house production and outsource polluting activities due to litigation risks. However, as larger polluters scale up polluting activities, aggregate pollution levels remain unchanged while market concentration increases. The findings highlight that individual mitigation effort may not necessarily translate into a reduction in aggregate pollution. The second paper, How Does Climate Change Affect Firm Sales? Identifying Supply Effects, studies whether local temperature affects firm sales. The empirical design uses production networks in the United States as a laboratory to control for product demand. The main finding is that a 1 degree celsius increase in average temperature lowers inter-firm sales by 2% after controlling for demand. The effects are driven by labor-intensive firms, financially and operationally constrained firms, and firms that sell more substitutable goods. The findings highlight that local temperature can have economically significant effects on corporate performance via a supply-side channel. The third paper, "Do Employee Rights Affect Shareholder Value?", studies whether legal entitlements to employees affect shareholder value. The empirical design uses a series of court rulings in the United States as a shock to weaken employee rights. The main finding is that weakened employee rights lower firm value and firm cash flows. Additional analyses suggest that employee treatment deteriorates and leads to a reduction in workforce. The findings highlight that employee rights can affect shareholder value via a human capital channel. Together, these three papers summarize the type of economic questions that interest me the most, and outline my research agenda going forward.Open Acces

Crafting a Compelling Action Hero Movie: A Psychological Inquiry into the Identification of Key Elements in Successful Storytelling through Film

Since the time humans have developed speech, storytelling has been a crucial part of society. Its values lie in the ability to communicate potential dangers about the world to generating laughter and tears as a form of entertainment. A central theme in stories that continues to reoccur over the course of history is the story of the hero. Carl Jung theorizes that the hero is an archetype in the collective unconscious, which explains humans’ innate inclinations towards heroes. Throughout history, the forms of storytelling have evolved due to technological and intellectual advancements. In modern times, film has risen as the leading modality for storytelling. The central theme of heroes continues to reoccur in this modality and is testified by the dominance of action hero movies in the box office. The purpose of this paper is to develop a model that details how to craft a compelling action hero movie based on empirical psychological research. The paper defines a compelling action hero movie as a movie with an action hero protagonist that maximizes narrative transportation, persuasion and enjoyment. By dissecting the construction of the film into its plot, character/diction, theme, melody and spectacle, the paper develops the PCTMS-NTPE Model that maximizes narrative transportation, persuasion and enjoyment in each aforementioned components. The beneficiaries of this paper are filmmakers and individuals who want to understand the inner psychological mechanics of a compelling action hero movie

Correct and Compositional Hardware Generators

Hardware generators help designers explore families of concrete designs and their efficiency trade-offs. Both parameterized hardware description languages (HDLs) and higher-level programming models, however, can obstruct composability. Different concrete designs in a family can have dramatically different timing behavior, and high-level hardware generators rarely expose a consistent HDL-level interface. Composition, therefore, is typically only feasible at the level of individual instances: the user generates concrete designs and then composes them, sacrificing the ability to parameterize the combined design. We design Parafil, a system for correctly composing hardware generators. Parafil builds on Filament, an HDL with strong compile-time guarantees, and lifts those guarantees to generators to prove that all possible instantiations are free of timing bugs. Parafil can integrate with external hardware generators via a novel system of output parameters and a framework for invoking generator tools. We conduct experiments with two other generators, FloPoCo and Google's XLS, and we implement a parameterized FFT generator to show that Parafil ensures correct design space exploration.Comment: 13 page

Pharmacologic inhibition of reactive gliosis blocks TNF-α-mediated neuronal apoptosis.

Reactive gliosis is an early pathological feature common to most neurodegenerative diseases, yet its regulation and impact remain poorly understood. Normally astrocytes maintain a critical homeostatic balance. After stress or injury they undergo rapid parainflammatory activation, characterized by hypertrophy, and increased polymerization of type III intermediate filaments (IFs), particularly glial fibrillary acidic protein and vimentin. However, the consequences of IF dynamics in the adult CNS remains unclear, and no pharmacologic tools have been available to target this mechanism in vivo. The mammalian retina is an accessible model to study the regulation of astrocyte stress responses, and their influence on retinal neuronal homeostasis. In particular, our work and others have implicated p38 mitogen-activated protein kinase (MAPK) signaling as a key regulator of glutamate recycling, antioxidant activity and cytokine secretion by astrocytes and related Müller glia, with potent influences on neighboring neurons. Here we report experiments with the small molecule inhibitor, withaferin A (WFA), to specifically block type III IF dynamics in vivo. WFA was administered in a model of metabolic retinal injury induced by kainic acid, and in combination with a recent model of debridement-induced astrocyte reactivity. We show that WFA specifically targets IFs and reduces astrocyte and Müller glial reactivity in vivo. Inhibition of glial IF polymerization blocked p38 MAPK-dependent secretion of TNF-α, resulting in markedly reduced neuronal apoptosis. To our knowledge this is the first study to demonstrate that pharmacologic inhibition of IF dynamics in reactive glia protects neurons in vivo

Protease signaling regulates apical cell extrusion, cell contacts, and proliferation in epithelia.

Mechanisms that sense and regulate epithelial morphogenesis, integrity, and homeostasis are incompletely understood. Protease-activated receptor 2 (Par2), the Par2-activating membrane-tethered protease matriptase, and its inhibitor, hepatocyte activator inhibitor 1 (Hai1), are coexpressed in most epithelia and may make up a local signaling system that regulates epithelial behavior. We explored the role of Par2b in matriptase-dependent skin abnormalities in Hai1a-deficient zebrafish embryos. We show an unexpected role for Par2b in regulation of epithelial apical cell extrusion, roles in regulating proliferation that were opposite in distinct but adjacent epithelial monolayers, and roles in regulating cell-cell junctions, mobility, survival, and expression of genes involved in tissue remodeling and inflammation. The epidermal growth factor receptor Erbb2 and matrix metalloproteinases, the latter induced by Par2b, may contribute to some matriptase- and Par2b-dependent phenotypes and be permissive for others. Our results suggest that local protease-activated receptor signaling can coordinate cell behaviors known to contribute to epithelial morphogenesis and homeostasis

Shifting from the Hidden Shadow to the Bright Sunshine under the COVID-19 Pandemic

The sudden and unprecedented outbreak of the global pandemic of coronavirus disease 2019 (COVID-19) has brought along a series of abrupt and sweeping disruptions on almost all learning systems around the world. The pandemic has simultaneously revealed many weaknesses and problems associated with the existing educational model, which serves as a timely reminder that educators should start thinking and doing education in a very different manner. Nonetheless, this does not simply means restoring the long-standing norms, or reorganising and perpetuating existing practices as “back to normal”, but discarding and transforming many obsolete assumptions and conventional operations as “new normal”. As one of the high-performing learning systems around the world throughout the decades, Hong Kong has successfully transitioned from disruptive schooling to “new normal” throughout the pandemic. With the collection of the series of rich experiences and concrete examples emerging and evolving across different layers of Hong Kong’s learning system, this conceptual article aims to shed light on ten key principles in terms of shaping a more responsive, resilient, and sustainable curriculum system for all students to survive or even thrive in the uncertain and unpredictable environment ahead of them

Thermal Models of Asteroids with Two-band Combinations of Wide-field Infrared Survey Explorer Cryogenic Data

We used the reparameterized Near-Earth Asteroid Thermal Model to model observations of a curated set of over 4000 asteroids from the Wide-field Infrared Survey Explorer in two wavelength bands (W2-3 or W3-4) and compared the results to previous results from all four wavelength bands (W1-4). This comparison was done with the goal of elucidating unique aspects of modeling two-band observations so that any potential biases or shortcomings for planned two-band surveys (e.g., the NASA Near-Earth Object Surveyor Mission) can be anticipated and quantified. The W2-3 two-band fits usually yielded slightly smaller diameters than the four-band fits, with a median diameter difference of -10%, with the 5% and 95% quantiles of the distribution at -32% and -1.5%, respectively. We conducted similar comparisons for W3-4, in part because the longest wavelength bands are expected to provide the best two-band results. We found that the W3-4 two-band diameters are slightly larger than the four-band results, with a median diameter difference of 11% and the 5% and 95% quantiles of the distribution at -2.1% and 26%, respectively. The diameter uncertainty, obtained with bootstrap analysis, is larger by 30% and 35% (median values) for the W2-3 and W3-4 fits, respectively, than for the corresponding four-band fits. Using 23 high-quality stellar occultation diameters as a benchmark, we found that the median errors of W2-3 and W3-4 diameter estimates are -15% and +12%, respectively, whereas the median error of the four-band fits is 9.3%. Although the W2-3 and W3-4 diameters appear to have greater systematic errors and uncertainties than their four-band counterparts, two-band estimates remain useful because they improve upon diameter estimates obtained from visible photometry alone.Comment: 18 pages, 21 figure