Financial Ethics

1. Auflage 2019
ISBN: 978-0-19-530596-8
Verlag: ACADEMIC

Buch, Englisch, 176 Seiten, Format (B × H): 145 mm x 216 mm, Gewicht: 476 g

Financial Ethics: A Positivist Analysis provides a framework for the study of financial ethics built on a broad review of mainstream scholarly research published in refereed finance and economics journals. The work is aimed directly at financial academics and students who are likely to be familiar with mainstream financial economics research. It demonstrates that ethics is already an important part of financial research, and therefore the approach taken here is more of a "rediscovery" of the ethical dimension of financial economics. This approach is important not only to remind fellow academics that ethics is a legitimate area of interest to positive financial economics, but also to encourage them to convey this message to their students without departing from mainstream financial theories and models.

A distinctive feature of the text is that it adopts a positivist framework for the field of financial ethics. The text proposes that many "finance" problems are actually "ethics" problems; and that many economic phenomena such as monitoring, bonding, certification, signaling, incentive contracts, and governance structures can be explained as mechanisms for controlling moral risks. The text discusses several examples in which an ethics-centered approach to understanding economic phenomena is similar in spirit to other frameworks which have been applied in positive financial research including: the framework used for understanding corporate governance mechanisms as devices for mitigating agency costs and "moral hazards" in contractual relationships; the transaction "governance structure" framework that can explain the existence of hierarchies relative to markets when opportunistic behavior is assumed; and the roles of reputation and corporate culture in making credible commitments of trust in exchange.

These "financial ethical technologies" are not mutually exclusive but, rather, mutually enriching ways to deepen our understanding of the same economic phenomena. They are financial technologies because they enhance economic value; and, they are ethical technologies because their value enhancing contributions are produced by mitigating moral risks in exchange.

Zielgruppe

The work is aimed directly towards financial academics; and students who are likely to be familiar with mainstream financial economics research. The primary audience for the book is advanced undergraduate and graduate finance majors. Students in such courses are often assigned articles in Financial Management, the Journal of Portfolio Management, the Journal of Applied Corporate Finance. These are mainstream finance journals targeted more to practice than theory.

Autoren/Hrsg.

Aragon

Aragon, George A.

Fachgebiete

• Geisteswissenschaften Philosophie Angewandte Ethik & Soziale Verantwortung Wirtschaftsethik, Unternehmensethik
• Wirtschaftswissenschaften Betriebswirtschaft Unternehmensfinanzen
• Wirtschaftswissenschaften Betriebswirtschaft Unternehmensorganisation, Corporate Responsibility Unternehmensethik
• Wirtschaftswissenschaften Betriebswirtschaft Unternehmensorganisation, Corporate Responsibility Unternehmenskultur, Corporate Governance

Inhaltsverzeichnis

PREFACE I
1.: NORMATIVE AND POSITIVE APPROACHES TO FINANCIAL
ETHICS 1-1
1.1 A WORKING DEFINITION OF FINANCIAL ETHICS 1-1
1.2 FINANCIAL ETHICS AND BUSINESS ETHICS 1-3
1.3 ORGANIZATION OF THE BOOK 1-7
2.: FINANCIAL ETHICS AS A FIELD OF STUDY 2-1
2.1 INEVITABLE INTERCONNECTIONS BETWEEN FINANCE AND ETHICS 2-1
2.1.1 THE EXPANDING DOMAINS OF ECONOMICS AND ETHICS 2-2
2.1.2 THE EVOLUTION OF FINANCIAL ECONOMIC RESEARCH 2-4
2.1.3 FINANCIAL SCANDALS 2-6
2.1.4 INVESTOR ACTIVISM 2-8
2.2 EVIDENCE OF ACADEMIC INTEREST IN FINANCIAL ETHICS 2-9
2.3 CHALLENGES TO THE INTEGRATION OF ETHICS AND FINANCE 2-11
2.4 THE FINANCE IS VALUE-FREE ARGUMENT 2-12
2.5 FRAMEWORK FOR FINANCIAL ETHICS 2-14
2.6 CONCLUSION 2-16
3.: ELEMENTS OF A POSITIVE FINANCIAL ETHICS 3-1
3.1 ETHICAL EXPECTATIONS AND ECONOMIC VALUE 3-1
3.2 ETHICAL RISK 3-2
3.3 ETHICAL RISK AND PERFECT COMPETITION 3-4
3.4 ETHICAL RISK AND IMPERFECT COMPETITION 3-5
3.5 POSITIVE FINANCIAL ETHICS: AN ILLUSTRATION FROM GAME THEORY 3-5
3.6 HOW VARIATION IN ETHICAL EXPECTATIONS MAY AFFECT THE TRUST GAME 3-8
3.6.1 GROUP SIZE 3-10
3.6.2 INTRINSIC MOTIVATIONS 3-11
3.7 CONCLUSION 3-12
4.: THE ETHICAL TECHNOLOGIES OF FINANCE 4-1
4.1 INTRODUCTION 4-1
4.2 FINANCIAL ETHICAL TECHNOLOGIES 4-1
4.3 OVERVIEW OF ETHICAL TECHNOLOGIES 4-2
4.4 INSTRUMENTAL ETHICAL TECHNOLOGIES 4-4
4.5 PROCEDURAL TECHNOLOGIES 4-10
4.6 EXPRESSIVE TECHNOLOGIES 4-16
4.7 ETHICAL TECHNOLOGIES IN THE CONCEPT OF DISCRIMINATING ALIGNMENT 4-18
4.8 CONFLICTS AMONG THE ETHICAL TECHNOLOGIES 4-19
4.9 CONCLUSION 4-20
5.: STUDIES ON THE INCIDENCE OF EXPROPRIATION 5-1
5.1 ETHICAL RISKS AND CAPITAL MARKETS 5-1
5.2 ECONOMIC PERFORMANCE ACROSS COUNTRIES 5-1
5.2.1 SOVEREIGN EXPROPRIATION RISK 5-3
5.2.2 TRUST AND EXPROPRIATION RISK 5-6
5.3 ETHICAL RISKS AND CORPORATE FINANCE 5-7
5.3.1 EXPROPRIATION RISK ACROSS COUNTRIES 5-7
5.3.2 EXPROPRIATION RISK ACROSS FIRMS 5-9
5.4 INTRA-SHAREHOLDER EXPROPRIATION 5-13
5.4.1 "SHARKING" AND "TUNNELING" 5-13
5.4.2 MULTIPLE SHARE CLASSES 5-17
5.4.3 "GREENMAIL" 5-18
5.4.4 INSIDER TRADING 5-19
5.5 EXPROPRIATION FROM OTHER STAKEHOLDERS 5-19
5.5.1 EXPROPRIATION FROM EMPLOYEES 5-20
5.5.2 EXPROPRIATION FROM MARKETS 5-21
5.6 SUMMARY 5-25
6.: FINANCIAL RESEARCH RELATING TO TRUST 6-1
6.1 TRUSTWORTHINESS 6-1
6.2 TRUST AND THE PRISONER'S DILEMMA GAME 6-2
6.3 TRUST AND GROUP SIZE 6-8
6.4 TRUST AND PRINCIPAL-AGENT RELATIONSHIPS 6-13
6.5 CONCLUSION 6-15
REFERENCES 1
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