Emirhan İlhan

You can contact me at: e.ilhan@fs.de

You can download my CV here.

Google Scholar


I am a Ph.D. candidate in Finance at the Frankfurt School of Finance & Management.

I visited McCombs School of Business at the University of Texas at Austin for the Spring Semester 2020.

My research interests lie in financial economics of climate change, household finance, and corporate finance.


  1. Carbon Tail Risk (with Zacharias Sautner and Grigory Vilkov)
    Review of Financial Studies, 2021, 34(3), 1540-1571
    • Q-KAP ESG Research Prize 2020 - ESG Special Award
    Data | Appendix | SSRN | Abstract

    Strong regulatory actions are needed to combat climate change, but uncertainty makes it difficult for investors to quantify the impact of future climate regulation. We show that climate policy uncertainty is priced in the option market. The cost of option protection against downside tail risks is larger for firms with more carbon-intense business models. For carbon-intense firms, the cost of protection against downside tail risk is magnified at times when the public’s attention to climate change spikes, and it decreased after the election of climate change skeptic President Trump.

Working Papers

  1. Sea Level Rise and Portfolio Choice
    • Best Ph.D. Paper Award, European Retail Investment Conference (ERIC) 2021
    SSRN | Abstract

    Economic theory suggests that the presence of undiversifiable background risks influences household portfolio choices. Households face significant location-specific background risks due to sea level rise (SLR). Using detailed local variation in SLR exposure and disaggregated geographic information on households in the United States, I show that SLR exposed homeowners are less likely to participate in the stock market and invest a smaller share of their financial wealth in risky assets, compared to unexposed homeowners in the same neighborhood. Differences in risk preferences and endogenous location choices are unable to explain this effect. Placebo tests in a sample of only renters corroborate that homeownership is the channel through which SLR affects portfolio choices. Using plausibly exogenous variation stemming from the adoption of state-level climate change adaptation plans that reduced households’ SLR risks, I provide causal evidence of the effect of SLR risks on portfolio allocation decisions. Following the adoption of such climate adaptation plans, SLR exposed households increase their stock market participation and hold a larger risky share in their financial wealth.

  2. Climate Risk Disclosure and Institutional Investors
    (with Philipp Krueger, Zacharias Sautner, and Laura Starks)
    Review of Financial Studies, R&R

    SSRN | Abstract

    Given ambiguity concerning the effects of disclosure on firm value and markets, we examine the question of whether investors value carbon risk disclosure. Through a survey and empirical tests, we conclude that many institutional investors consider climate risk reporting to be as important as financial reporting. However, systematic variation exists in their opinions depending on firm characteristics, investor characteristics and investor beliefs about climate change. Our empirical tests show that greater institutional ownership, particularly investors from high social norm countries, is associated with a higher propensity of firms to voluntarily disclose their carbon emissions and to provide higher quality information.