Dr. Yuanshun Li: Investigating the Business Effects of Sustainable Choices

Yuanshun Li

Dr. Yuanshun Li
Associate Professor, School of Accounting and Finance
Ted Rogers School of Management

With the causes and effects of climate change continuing to be a growing concern for businesses in all industries, many companies are now using carbon emission trading to ensure their operations align with a newfound focus on sustainability.

Dr. Yuanshun Li’s research explores what effects this carbon emission trading has on participating companies. What are the implications for the stock returns of companies that make strategic decisions with an environmental focus? How does the enactment of environmentally driven constituency statutes affect business decisions and stock returns? What are the impacts on the companies’ choices between traditional energy and sustainable energy?

As one of four Principal Investigators engaged in the Ted Rogers School of Management’s Joint Research Grant Project with the Faculty of Business at Hong Kong Polytechnic University (FB PolyU), Dr. Li is excited about the international collaboration’s successes and potential. He says the partnership has already resulted in access to more extensive information, including proprietary hand-collected carbon emission trading data, which allows investigators to perform a cross-disciplinary research and do a more complex analysis on carbon emission trading, its impact on stock market performance and the strategic decision of choosing different types of energy.

For Dr. Li, his research is closely related to TRSM’s goal of expanding community engagement and city building, for students and faculty.

“Our academic plan indicates that our institution wants to engage in city building and subscribe to higher business ethics. It’s quite interesting for us, and for many industries, to understand the impact (cost and benefit analysis) of being environmentally friendly, either by trading carbon emissions or switching to sustainable energy.”

This research profile originally appeared in Think, Act, Connect: Ted Rogers School of Management Research Report 2015. To read the full report, visit Research at the Ted Rogers School of Management.