Wednesday webinar at one: The pollution premium

Wednesday 12 May 2021 | 13:00 - 13:40 | Webinar

This webinar brought to you by CFA UK's Climate Change working group will discuss the paper, The Pollution Premium. This paper, produced by Kai Li, Assistant Professor of Finance and Chi-Yang Tsou, Postdoctoral Fellow of Finance, both of Hong Kong University of Science and Technology, studies the asset pricing implications of industrial pollution.

This webinar will discuss U.S. public listed firms and document a pollution premium, that is, firms with higher toxic emission intensity that generate higher average stock returns than those with lower intensity within the same industry.

Kai Li and Chi -Yang Tsou examine several possible explanations for this pollution premium:

  • Policy uncertainty with respect to environmental regulations,
  • Relatedness to existing systematic risks
  • Investors' preference for social responsibility
  • Market sentiment
  • Political connection
  • Corporate governance

Where recordings are made, these are a member benefit that are accessed through the member-only platform, CFA UK Discover.

Timings

Registration: 12:55

Event: 13:00 - 13:40

CPD Points: 0.75

Speakers

Kai Li, Assistant Professor of Finance, Hong Kong University of Science and Technology

Professor Kai Li is an Assistant Professor of Finance at Hong Kong University of Science and Technology (HKUST) and Peking University. He holds a Ph.D. degree in economics from Duke University, and Master’s degree in economics from Peking University.

Kai's research area includes asset pricing, macro finance and financial economics. His current research projects study the implications of financial frictions on the asset returns, climate and green finance, Intangible capital and factor investing, and China’s financial markets. His research articles have been published in top academic journals, such as Review of Financial Studies and Journal of Financial Economics.

Dr Chi-Yang Tsou, Postdoctoral Fellow of Finance, Hong Kong University of Science and Technology

Chi-Yang Tsou is a postdoctoral fellow of finance at the Hong Kong University of Science and Technology (HKUST). Soon he will be joining the division of accounting and finance as a lecturer in the Alliance Manchester Business School, the University of Manchester in autumn 2021.

Chi-Yang holds a Ph.D. degree in finance and master’s degree in economics from the University of Hong Kong. His research areas include theoretical asset pricing, empirical asset pricing, and macro finance. His current research interest is to understand the implications of corporate finance frictions on the stock returns and climate finance.

Chi-Yang is a member of the American Finance Association and the European Finance Association.

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