Review of Financial Studies Climate Finance Conference

Review of Financial Studies Climate Finance Conference

Friday 5th and Saturday 6th October 2018

This conference will feature papers on various topics related to Climate Finance by scholars from around the world.

The topics featured will include corporate governance and pollution externalities, institutional and retail investor attention to global warming, climate shocks and earnings news, sea-level rise and property valuations, and the pricing of uncertainty induced by climate change, among others. These featured papers have been facilitated by the Review of Financial Studies using a novel two-stage registered-reports editorial process with their publication expected in Spring 2019.

A special industry panel with leading practitioners from the asset management, property development, and corporate sectors involved with measurement and mitigation of climate change risk will take place at the end of the first day.

The conference is sponsored by Norges Bank Investment Management and Columbia University Department of Economics, is organised by the Brevan Howard Centre for Financial Analysis at Imperial College Business School, with the support of the Society for Finance Studies, and the Prince of Wales’ University of Cambridge Institute for Sustainability Leadership and Accounting for Sustainability Project.

It will be held in London at Claridge’s Hotel, Mayfair, London as a day and a half event.

The programme can be found here.

Friday 5th October 2018

Day One

Time Activity
8.15-8.45 Registration
8.45 – 9.00 Welcome address

Harrison Hong, Andrew Karolyi and Jose Scheinkman (Conference Co-organisers) and Francisco Veloso (Dean of Imperial College Business School)

9.00 – 10.30 Session 1: Investor Attitudes to Climate Change

Chairperson: Andrew Karolyi (Cornell University)

 

Paper 1:  Darwin Choi (The Chinese University of Hong Kong)

Attention to Global Warming

co-authored with Zhenyu Gao (The Chinese University of Hong Kong) and Wenxi Jiang (The Chinese University of Hong Kong)

 

Paper 2:  Laura Starks (University of Texas at Austin)

The Importance of Climate Risk for Institutional Investors

co-authored with Philipp Krueger (University of Geneva and SFI) and Zacharias Sautner (Frankfurt School of Finance and Management)

10.30 – 11.00 Tea/Coffee
11.00- 12.30 Session 2:  Beliefs and Expectations Errors

Chairperson:  Harrison Hong (Columbia University)

 

Paper 3: Russ Wermers (University of Maryland)

Do Fund Managers Misestimate Climatic Disaster Risk?

co-authored with Nitin Kumar (Indian School of Business) and Alok Shashwat (Indian School of Business)

 

Paper 4: Markus Baldauf (University of British Columbia) 

Does Climate Change Affect Real Estate Prices? Only If You Believe In It

co-authored with Lorenzo Garlappi (University of British Columbia) and Constantine Yannelis (New York University)

12.30 – 13.30 Lunch
13.30 – 15.45 Session 3: Pricing Climate Change Uncertainty

Chairperson: Jose Scheinkman (Columbia University)

 

Paper 5: Kathrin de Greiff (University of Zurich and Swiss Finance Institute)

Being Stranded on the Carbon Bubble? Climate Policy Risk and the Pricing of Bank Loans

Co-authored with Manthos D. Delis (Montpelier Business School) and Steven Ongena (University of Zurich, Swiss Finance Institute, KU Leuven and CEPR)

Discussant: Katrin Tinn (Imperial College Business School)

 

Paper 6:  Justin Murfin (Cornell University)

Is the risk of sea level rise capitalized in residential real estate?

co-authored with Matthew  Spiegel (Yale University)

 

Paper 7: Lars Peter Hansen (University of Chicago)

Pricing Uncertainty Induced by Climate Change

co-authored with William Brock (University of Wisconsin, Madison) and Michael Barnett (University of Chicago)

15.45  16.15 Tea/Coffee
16.15 – 17.45  Session 4: Industry Panel

Moderator: Charles Donovan (Director, Centre for Climate Finance and Investment, Imperial College Business School)

Panelists: Carine Smith Ihenacho (Chief Corporate Governance Officer, Norges Bank Investment Management (NBIM)

Ashley Schulten (Managing Director and Head of Climate Solutions, Fixed Income Group, BlackRock)

17.45-18.45 Drinks Reception

 

 

 

Saturday 6th October 2018

Day Two

Time Activity
8.15-9.00 Registration and Continental Breakfast
9.00 – 10.30 Session 5: Climate Change, Corporate Governance and Financial Policy

Chairperson: Andrew Karolyi (Cornell University)

 

Paper 8:  Jawad Addoum (Cornell University)

Climate Shocks and Earnings News

co-authored with David Ng (Cornell University) and Ariel Ortiz-Bobea (Cornell University)

 

Paper 9:  Sophie Shive (University of Notre Dame)

Corporate governance and pollution externalities of public and private firms

co-authored with Margaret Forster (University of Notre Dame)

10.30 – 11.00 Tea/Coffee
11.00- 12.30 Session 6:  Financing and Hedging Climate Change

Chairperson:  Harrison Hong Columbia University

 

Paper 10: Jeff Wurgler (New York University and NBER)

Financing the Response to Climate Change: The Pricing and Ownership of U.S. Green Bonds

co-authored with Malcolm Baker (Harvard Business School and NBER), Daniel Bergstresser (Brandeis International Business School), and George Serafeim (Harvard Business School)

Discussant: Claudia Custodio (Imperial College Business School)

 

Paper 11: Stefano Giglio (Yale University)

Hedging Climate Change News

co-authored with Robert  Engle (New York University) Stefano Giglio (University of Chicago), Bryan Kelly, (Yale University)

Heebum Lee (New York University) and Johannes Stroebel (New York University)

12.30 – 12.35 Closing Remarks

Harrison Hong, Andrew Karolyi, and Jose Scheinkman

(Conference Co-organizers)

12.35 – 13.30 Lunch