FINANCE ETHICS: Critical Issues in Theory and Practice -- Contents -- Part I: Overview -- Chapter 1: Ethics in Finance* -- INTRODUCTION -- FINANCE THEORY -- FINANCIAL MARKETS -- FINANCIAL SERVICES -- FINANCIAL MANAGEMENT -- CONCLUSION -- REFERENCES -- ABOUT THE AUTHOR -- Part II: Finance Theory -- Chapter 2: Ethical Implications of Finance -- INTRODUCTION -- KEY ASSUMPTIONS IN FINANCE -- THE TIME VALUE OF MONEY -- RISK, RISK AVERSION, AND EXPECTED RETURN -- THE PRICE OF RISK-BEARING SERVICES -- NET PRESENT VALUE AND CORPORATE FINANCIAL MANAGEMENT -- FINANCE, CORPORATE GOVERNANCE, AND THE GOAL OF THE FIRM -- OPTION PRICING THEORY -- RISK MANAGEMENT -- BEHAVIORAL FINANCE -- CONCLUSION -- NOTES -- REFERENCES -- ABOUT THE AUTHOR -- Chapter 3: Behavioral Assumptions of Finance -- INTRODUCTION -- THE AXIOMS OF RATIONALITY -- IMPLICATIONS OF THE SIX AXIOMS -- THE DESCRIPTIVE ACCURACY OF THE BEHAVIORAL ASSUMPTIONS OF FINANCE -- THE ULTIMATUM GAME -- ANIMAL BEHAVIOR -- NEUROSCIENCE -- PRESCRIPTIVE IMPLICATIONS -- EDUCATIONAL IMPLICATIONS -- NOTES -- REFERENCES -- ABOUT THE AUTHOR -- Chapter 4: Efficiency and Rationality -- INTRODUCTION -- RATIONAL CHOICE -- EFFICIENCY -- DEBATES ABOUT DESCRIPTIVE CLAIMS -- NORMATIVE ISSUES -- CONCLUSION -- NOTES -- REFERENCES -- ABOUT THE AUTHOR -- Chapter 5: Returns, Risk, and Financial Due Diligence -- BASIC CONCEPTS OF RISK AND RETURN IN FINANCIAL ECONOMICS -- PUTTING THEORY INTO PRACTICE-THE MADOFF EXAMPLE -- CONCLUSION -- APPENDIX A: COMMON DEFINITIONS OF RETURN -- NOTES -- REFERENCES -- ABOUT THE AUTHORS -- Chapter 6: Reputational Risk -- INTRODUCTION -- THE SPECIAL CHARACTER OF FINANCIAL SERVICES -- WHAT IS REPUTATIONAL RISK? -- SOURCES OF REPUTATIONAL RISK -- VALUING REPUTATIONAL RISK -- CONCLUSION -- NOTES -- REFERENCES -- ABOUT THE AUTHOR -- Chapter 7: Agency Theory -- INTRODUCTION.

CONFLICT WITH BUSINESS ETHICS -- AGENCY THEORY AND SELF-INTEREST -- AGENCY THEORY AND SHAREHOLDER PRIMACY -- AGENCY THEORY AND MISPLACED LOYALTY -- WHAT'S THE PROBLEM? -- CONCLUSION -- REFERENCES -- ABOUT THE AUTHOR -- Chapter 8: The Financial Theory of the Firm -- INTRODUCTION -- WHAT KIND OF THEORY IS THE "THEORY OF THE FIRM"? -- COMING TO TERMS WITH THE PUBLIC CORPORATION -- TAKING RIGHTS AND DUTIES IN (AND OUT OF) THE NEXUS OF CONTRACTS SERIOUSLY -- CONCLUSION -- NOTES -- REFERENCES -- ABOUT THE AUTHOR -- Part III: Financial Markets -- Chapter 9: Fairness in Financial Markets -- MARKETS AND FINANCIAL MARKETS -- FAIRNESS: FORMAL AND SUBSTANTIVE -- FOUNDATIONS OF MARKETS -- THE OPERATIONS OF FINANCE -- CONCLUSION -- REFERENCES -- ABOUT THE AUTHOR -- Chapter 10: Regulation -- INTRODUCTION -- THE REGULATORY FRAMEWORK -- ADEQUACY OF REGULATORY AUTHORITY -- REGULATING ROOT CAUSES -- CONCLUSION -- APPENDIX A CURRENT LEGISLATIVE ACTIVITY -- NOTES -- REFERENCES -- ABOUT THE AUTHOR -- Chapter 11: Insider Trading -- INTRODUCTION -- DEFINING INSIDER TRADING -- LEGAL RULES FOR INSIDER TRADING -- UTILITARIAN PERSPECTIVE -- FAIRNESS PERSPECTIVE -- PROPERTY RIGHTS PERSPECTIVE -- MARKET MORALITY PERSPECTIVE -- CONCLUSION -- NOTES -- REFERENCES -- ABOUT THE AUTHORS -- Chapter 12: Derivative Contracts: Futures, Options, and Swaps -- INTRODUCTION -- DERIVATIVES DEFINED -- TYPES OF DERIVATIVES CONTRACTS -- THE SIZE OF THE MARKET FOR DERIVATIVES -- HOW ARE DERIVATIVES USED? -- NOTES -- REFERENCES -- ABOUT THE AUTHOR -- Chapter 13: Hedge Funds -- INTRODUCTION -- BACKGROUND ON HEDGE FUNDS -- ALLEGED UNFAIR TAX BENEFITS -- ALLEGED INVESTOR DUPING -- ALLEGED SOCIAL HARM -- HEDGE FUND TRANSPARENCY AND REGULATION -- CONCLUSION -- REFERENCES -- ABOUT THE AUTHOR -- Chapter 14: Sovereign Wealth Funds -- INTRODUCTION -- GENERAL BACKGROUND AND DESCRIPTION OF SWFs.

SWF's BENEFITS AND POTENTIAL COSTS -- GENERAL POLICY ISSUES: BENIGN AND MALIGN EXPLANATIONS -- ETHICAL ISSUES SURROUNDING SWFs -- CONCLUSION -- NOTES -- REFERENCES -- ABOUT THE AUTHOR -- Part IV: Financial Services -- Chapter 15: Marketing of Financial Services -- INTRODUCTION -- AN ETHICAL FRAMEWORK -- MARKETING MORTGAGES -- CREDIT CARDS -- PAYDAY LOANS -- CONCLUSION -- NOTES -- REFERENCES -- ABOUT THE AUTHOR -- Chapter 16: Financial Codes of Ethics -- INTRODUCTION -- WHAT IS A PROFESSION? -- CORE PRINCIPLES IN ETHICS CODES -- EFFECTIVENESS OF CODES -- APPENDIX A -- NOTES -- REFERENCES -- ABOUT THE AUTHORS -- Chapter 17: Banking -- INTRODUCTION -- COMMERCIAL BANKS AND FINANCIAL INTERMEDIATION -- BANKING WITH INTEGRITY -- BANKING WITH RESPONSIBILITY -- BANKING WITH AFFINITY -- CONCLUSION -- REFERENCES -- ABOUT THE AUTHOR -- Chapter 18: Mutual Funds -- INTRODUCTION -- THE MUTUAL FUND INDUSTRY AND INSTITUTIONAL BROKERAGE -- A TRANSACTION COST ANALYSIS OF INSTITUTIONAL BROKERAGE -- ISCT AND THE ETHICS OF INSTITUTIONAL BROKERAGE REBATES -- CONCLUSION -- NOTES -- REFERENCES -- ABOUT THE AUTHOR -- Chapter 19: Pension Funds -- INTRODUCTION -- PRIVATE PENSIONS PLANS -- PUBLIC PENSION PLANS -- SHAREHOLDER ACTIVISM AND SOCIAL INVESTING -- CONCLUSION -- NOTES -- REFERENCES -- ABOUT THE AUTHOR -- Chapter 20: Insurance -- INTRODUCTION -- THE NATURE OF INSURANCE -- THE DEVELOPMENT OF MODERN INSURANCE -- MORAL HAZARD AND ADVERSE SELECTION -- LIFE INSURANCE -- PROPERTY AND CASUALTY INSURANCE -- HEALTH INSURANCE -- CONCLUSION -- NOTES -- REFERENCES -- ABOUT THE AUTHORS -- Chapter 21: Responsible Investing -- INTRODUCTION -- HISTORY OF RESPONSIBLE INVESTMENT -- TOOLS AND STRATEGIES USED BY RESPONSIBLE INVESTORS -- MAJOR PLAYERS IN THE RESPONSIBLE INVESTING FIELD -- MAJOR CHALLENGES OF RI TODAY -- NOTES -- REFERENCES -- ABOUT THE AUTHORS -- Chapter 22: Microfinance.

INTRODUCTION -- MICROFINANCE -- MICROCREDITS -- THE SOCIAL RESPONSIBILITY OF MICROFINANCE -- SUSTAINABILITY AND THE FIGHT AGAINST POVERTY -- THE ETHICAL PROBLEMS ASSOCIATED WITH INTEREST RATES -- CONCLUSION -- NOTES -- REFERENCES -- ABOUT THE AUTHOR -- Part V: Financial Management -- Chapter 23: Shareholder Wealth Maximization -- INTRODUCTION -- HISTORICAL BACKGROUND AND TECHNICAL CONSIDERATIONS -- JUSTIFICATIONS FOR SHAREHOLDER WEALTH MAXIMIZATION -- CRITIQUE FROM BUSINESS ETHICS AND CORPORATION LAW -- CRITIQUE FROM CORPORATE SOCIAL RESPONSIBILITY -- CRITIQUE FROM STAKEHOLDER THEORY -- CONCLUSION -- REFERENCES -- ABOUT THE AUTHOR -- Chapter 24: Earnings Management -- INTRODUCTION -- MOTIVATIONS TO USE EARNINGS MANAGEMENT -- ETHICAL ANALYSIS OF EARNINGS MANAGEMENT -- LEADERSHIP AND GOVERNANCE IMPLICATIONS -- INSTITUTIONAL AND VOLUNTARY MEASURES TO PREVENT EARNINGS MANAGEMENT -- EARLY RECOGNITION -- CONCLUSION -- NOTES -- REFERENCES -- ABOUT THE AUTHOR -- Chapter 25: Investor Relations -- INTRODUCTION -- SHAREHOLDERS, CORPORATE OBLIGATIONS, AND THE PROVISION OF INFORMATION -- MANAGING THE FLOW OF INFORMATION -- MANAGING THE CONTENT OF INFORMATION -- TRANSPARENCY AND THE " RIGHT TO KNOW" -- EMERGING FUTURE DIRECTIONS -- NOTES -- REFERENCES -- ABOUT THE AUTHORS -- Chapter 26: Risk Management -- INTRODUCTION -- MODERN RISK MANAGEMENT IN OVERVIEW -- ENTERPRISE RISK MANAGEMENT: THE EMERGING FRAMEWORK -- ETHICS AND ENTERPRISE RISK MANAGEMENT -- SEARCHING FOR THEMES -- CONCLUSION -- REFERENCES -- ABOUT THE AUTHOR -- Chapter 27: Bankruptcy -- INTRODUCTION -- THE COMMERCIAL BANKRUPTCY PROCESS -- ETHICAL JUSTIFICATION OF THE BANKRUPTCY SYSTEM -- ETHICAL ISSUES IN THE ADMINISTRATION OF THE BANKRUPTCY SYSTEM -- CONCLUSION -- NOTES -- REFERENCES -- ABOUT THE AUTHORS -- Chapter 28: Acquisitions, Mergers, and Takeovers -- INTRODUCTION -- DEFINITIONAL ISSUES.

HISTORICAL CONSIDERATIONS -- ETHICAL CONSIDERATIONS IN AMTs: PROCESS AND OUTCOMES -- HOSTILE TAKEOVERS -- ACQUISITIONS AND MERGERS -- THE ROLE OF THE BOARD OF DIRECTORS -- CONCLUSION -- REFERENCES -- ABOUT THE AUTHORS -- Chapter 29: Executive Compensation -- INTRODUCTION -- THE ELEMENTS OF EXECUTIVE PAY -- HISTORICAL TRENDS IN EXECUTIVE COMPENSATION -- THE ACADEMIC CONTEST OVER EXECUTIVE PAY -- A BROADER ETHICAL EVALUATION OF EXECUTIVE PAY -- CONCLUSION -- REFERENCES -- ABOUT THE AUTHOR -- Chapter 30: Boards of Directors -- INTRODUCTION -- LEADERSHIP STRUCTURE OF THE BOARD -- A COLLISION OF THEORIES -- THE EXECUTIVE COMMITTEE ABSENT A RUDDER? -- UNITY OF COMMAND IN A CRISIS ENVIRONMENT -- LEADERSHIP STRUCTURE OF THE BOARD AND FIRM PERFORMANCE -- SEPARATE LEADERSHIP IS NOT INDEPENDENT -- PERILOUSLY CLOSE TO THE WORST-CASE SCENARIO -- INDEPENDENCE OF THE BOARD -- ANOTHER COLLISION OF THEORIES -- COMPOSITION OF THE BOARD AND FIRM PERFORMANCE -- ARE BOARDS EVER INDEPENDENT? -- DISCUSSION -- TO WHAT EXTENT IS THERE ANY RELEVANCE? -- REFERENCES -- ABOUT THE AUTHORS -- Index.