Ethics in Finance

by Boatright, John R.

• ISBN13: 9781405156004
• ISBN10: 1405156007
• Edition: 2nd
• Format: Paperback
• Copyright: 2007-10-22
• Publisher: Wiley-Blackwell

Summary

This second edition of the ground-breaking Ethics in Finance provides a valuable, up-to-date addition to the emerging field of finance ethics. Citing examples of the scandals that have shaken public confidence in Wall Street, John R. Boatright explores the importance of ethics in the operation of financial institutions and in the personal conduct of finance professionals. In addition to the topics considered in the first edition - including unethical sales practices, insider and program trading, the abuse of bankruptcy, and hostile takeovers - this broadened second edition: Incorporates new discussions of issues in mutual funds and financial engineering, the independence of analysts at investment banks, the bank's responsibility for the conduct of its clients, and a number of other significant subjects Includes a chapter on conflicts of interest in financial services Offers expanded treatment of ethical issues in IPOs and a discussion about the discarding of pension funds. This comprehensive book is suitable for anyone involved in financial activities, as well as students of finance and business ethics.

Author Biography

John R. Boatright is the Raymond C. Baumhart, S. J., Professor of Business Ethics and Professor of Management in the School of Business Administration at Loyola University Chicago. He is author of the textbook Ethics and The Conduct of Business, and editor of a casebook Cases in Ethics and the Conduct of Business. Boatright is a former president of the Society for Business Ethics, and he serves on the editorial boards of Journal of Business Ethics, Business Ethics Quarterly, and Business and Society Review. A graduate of the College of Wooster, he received his MA and PhD in Philosophy from the University of Chicago.

Table of Contents

Preface	p. vii
Preface to the First Edition	p. ix
Acknowledgments	p. xi
Abbreviations	p. xii
Financial Ethics: An Overview	p. 1
The Need for Ethics in Finance	p. 4
Ethics and Financial Markets	p. 10
The Financial Services Industry	p. 13
Individuals in Organizations	p. 24
Theoretical Perspectives in Finance	p. 30
Equity and Efficiency	p. 31
Fiduciaries, Agents, and Professionals	p. 38
Agency Theory	p. 44
Conflict of Interest	p. 50
Ethical Issues in Financial Services	p. 68
Sales Practices	p. 69
Churning, Twisting, and Flipping	p. 78
Arbitration	p. 84
Personal Trading	p. 90
Mutual Funds	p. 99
Ethical Issues in Investment Decisions	p. 112
Bank Lending Practices	p. 113
Socially Responsible Investing	p. 119
Relationship Investing	p. 125
Investment and the New Finance	p. 132
Ethics in Financial Markets	p. 142
Insider and Program Trading	p. 143
The Ethics of Bankruptcy	p. 150
Hostile Takeovers	p. 160
The Financial Theory of the Firm	p. 176
Traditional Theories	p. 177
The Contractual Theory	p. 182
The Objective of the Firm	p. 189
The Stakeholder Challenge	p. 198
Index	p. 207
Table of Contents provided by Ingram. All Rights Reserved.