Research Papers
Yang, R. 2025. Can We Randomize Worlds? An Exploration into the Multiverse
URL: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5807882
Causal inference involving a large number of economic agents has traditionally relied on a mix of techniques that often require a huge amount of resources and luck. In this paper, I present an exploration into the virtual multiverse, which can be used to study causal relations without requiring either as much resources or luck. Based on evidence from a pair of virtual worlds, I demonstrate how the multiverse can be an effective tool for testing causal hypotheses in finance and economics. To further the utilization of the multiverse, I provide a discussion of potential future applications and research directions.
Yang, R. 2022. Socially Responsible Investing in a Free and Democratic Society
URL: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4032783
Abstract:
Socially responsible investing aims to make the world a better place by using capital markets as a tool to tackle environmental and social problems that are typically addressed by the government. While this goal at face value is laudable, I show that socially responsible investors exacerbate such problems in a model where businesses are neither perfectly good nor perfectly bad. Depending on the degree of wealth inequality and dispersion in investor tastes, socially responsible investing can result in outcomes inconsistent with those derived from the will of the people.
Yang, R. 2021. Credit Ratings in the Age of Environmental, Social, and Governance (ESG)
URL: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3595376
Abstract:
I present the first study that systematically examines the implications of ESG adoption by credit rating agencies. I find that, with a recent move by Standard & Poor’s and Moody’s towards incorporating ESG issues into their analysis, credit ratings positively reflect firms with lower carbon emissions and better social ratings. Despite the recognition of such issues by credit rating agencies, I discover no consistent evidence of improvement in the informational quality of credit ratings. This is concerning as the stated purpose of ESG adoption is to enhance their assessment of credit risk.
Publications
Calomiris, C., Mamaysky, H., and Yang, R. 2026. Measuring the Cost of Regulation: A Text-based Approach. Journal of Financial and Quantitative Analysis (accepted)
Yang, R. and Koci, I. 2025. Socially Conscious Investors Mitigating Stock Market Losses in a Time of Crisis: Evidence from the COVID-19 Crash. The Quarterly Journal of Finance. Vol. 15, Issue 1: 2550001.
Yang, R. 2022. What Do We Learn From Ratings About Corporate Social Responsibility (CSR)? New Evidence of Uninformative Ratings. Journal of Financial Intermediation. Vol. 52., October 2022: 100994.
Yang, R. 2013. When is BitCoin a Security Under U.S. Securities Law? Journal of Technology Law and Policy. Vol. 18, Issue 2: 99-129.
Yang, R. 2013. Could the Virtual Be Similar to the Real? A First Look from an Efficient Markets Perspective. The Quarterly Journal of Finance. Vol. 3. No. 4: 1-21.
Yang, R. 2012. Virtual World Bots: A Defense for Fair Use. Arizona State Sports and Entertainment Law Journal. Vol. 2, Issue 2: 95-138.
Koehler, M., Yang, R., Gray, L. 2012. Cell-based Volume Integration for Boundary Integral Analysis. International Journal for Numerical Methods in Engineering. Vol. 90, Issue 7: 915–927.
Yang, R. 2025. Can We Randomize Worlds? An Exploration into the Multiverse
URL: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5807882
Causal inference involving a large number of economic agents has traditionally relied on a mix of techniques that often require a huge amount of resources and luck. In this paper, I present an exploration into the virtual multiverse, which can be used to study causal relations without requiring either as much resources or luck. Based on evidence from a pair of virtual worlds, I demonstrate how the multiverse can be an effective tool for testing causal hypotheses in finance and economics. To further the utilization of the multiverse, I provide a discussion of potential future applications and research directions.
Yang, R. 2022. Socially Responsible Investing in a Free and Democratic Society
URL: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4032783
Abstract:
Socially responsible investing aims to make the world a better place by using capital markets as a tool to tackle environmental and social problems that are typically addressed by the government. While this goal at face value is laudable, I show that socially responsible investors exacerbate such problems in a model where businesses are neither perfectly good nor perfectly bad. Depending on the degree of wealth inequality and dispersion in investor tastes, socially responsible investing can result in outcomes inconsistent with those derived from the will of the people.
Yang, R. 2021. Credit Ratings in the Age of Environmental, Social, and Governance (ESG)
URL: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3595376
Abstract:
I present the first study that systematically examines the implications of ESG adoption by credit rating agencies. I find that, with a recent move by Standard & Poor’s and Moody’s towards incorporating ESG issues into their analysis, credit ratings positively reflect firms with lower carbon emissions and better social ratings. Despite the recognition of such issues by credit rating agencies, I discover no consistent evidence of improvement in the informational quality of credit ratings. This is concerning as the stated purpose of ESG adoption is to enhance their assessment of credit risk.
Publications
Calomiris, C., Mamaysky, H., and Yang, R. 2026. Measuring the Cost of Regulation: A Text-based Approach. Journal of Financial and Quantitative Analysis (accepted)
Yang, R. and Koci, I. 2025. Socially Conscious Investors Mitigating Stock Market Losses in a Time of Crisis: Evidence from the COVID-19 Crash. The Quarterly Journal of Finance. Vol. 15, Issue 1: 2550001.
Yang, R. 2022. What Do We Learn From Ratings About Corporate Social Responsibility (CSR)? New Evidence of Uninformative Ratings. Journal of Financial Intermediation. Vol. 52., October 2022: 100994.
Yang, R. 2013. When is BitCoin a Security Under U.S. Securities Law? Journal of Technology Law and Policy. Vol. 18, Issue 2: 99-129.
Yang, R. 2013. Could the Virtual Be Similar to the Real? A First Look from an Efficient Markets Perspective. The Quarterly Journal of Finance. Vol. 3. No. 4: 1-21.
Yang, R. 2012. Virtual World Bots: A Defense for Fair Use. Arizona State Sports and Entertainment Law Journal. Vol. 2, Issue 2: 95-138.
Koehler, M., Yang, R., Gray, L. 2012. Cell-based Volume Integration for Boundary Integral Analysis. International Journal for Numerical Methods in Engineering. Vol. 90, Issue 7: 915–927.