Research

I. Finance

ESG Scores, Scandal Probability, and Event Returns

• Financial Innovation (2024)
• Yichen Luo, Wenzhi Ding, Wenya Sun, S.M. Yiu, Luping Yu
• Brief: High ESG scores can lower the probability of an ESG scandal but can also incur higher losses if one occurs. Based on a theoretical model, the firm has two equilibria of the optimal ESG investment level - not doing at all or doing a lot.
• Media Coverage: Sing Tao Daily

II. Computer Science

Piercing the Veil of TVL: DeFi Reappraised

• Financial Cryptography and Data Security (2025)
• Yichen Luo, Yebo Feng, Jiahua Xu, Paolo Tasca
• Brief: We propose a new metric, Total Value Redeemable (TVR), to accurately assess the value within DeFi, addressing the ‘double counting’ issue in Total Value Locked (TVL) calculations.