The need for ethical education is as long standing as the history of scandalsthat plague the financial industry. Understanding the cause and effect of economic crises and scandals from an ethical perspective ensures the long run health of our financial markets. Sarah W. Peck’s Investment Ethics is an applied and uniquely focused textbook that provides students with the tools, examples, and exercises they need to understand ethical concepts and consequences in the practice of finance; especially regarding investments. This text servesnot only as a key tool in the classroom, but also a longstanding guide for examining the ethical practices of companies and organizations INDICE: PREFACE PART I- Ethical Behavior CHAPTER 1- Introduction: The Casefor Investment Ethics Introduction-The Investment Industry- A Legacy of Scandals and a Need for Ethics A Brief Overview of the Investment Industry Securities Laws and Regulations Investment Ethics Are Easier Said Than Done Ethics Basics Four Fundamental Principles of Investment Ethics Costs and Benefits of Being Unethical Conclusion-Developing an Ethical Consciousness Appendix- Financial Market Regulatory Agencies CHAPTER 2- Fiduciary Duty of Investment Professionals- The Ethical Treatment of the Client Introduction- What is A Fiduciary? Agency Versus Fiduciary Relationships The Role of Laws, Regulations, and Professional Standards The Importance of Confidentiality Conflicts in Finding the Right Investments Conflicts in Trade Management- Best Execution Conflicts in Trade Management- Soft Dollars Identification and Fair Treatment of Clients Conclusion-Disclose! Disclose! Disclose! Appendix- Professional Codes of Ethics CHAPTER 3-Ethical Reporting of Investment Performance Introduction to Ethics in Reporting Performance Calculating Return: Predicting Future Performance or Measuring Performance for Current Clients? Ethical Reporting of Risk Measures Management Fees and Other Costs That Can Be Hidden Time Periods Used to Estimate Historical Risk t Trade Conclusion- The Crystal Ball Appendix- Review of Investments Basics CHAPTER 4-Ethical Use of Information Introduction- Information and The Search for Alpha Information Asymmetry Private Information-Talent Trading On Inside Information Trading on Trading by Insiders Influential Publications Direct Communication with Corporations Investment Banking and Chinese Walls Mosaic Theory Front Running High Speed Flash Trading Mutual Funds And Information Advantages Arising From Stale Prices Market Manipulation Conclusion- Information And Fairness CHAPTER 5-Analyst Integrity Introduction- Analysts and Their Ethical Obligations Investment Recommendations-Pickers Forecasters Buy Sideand Sell Side Analysts- Who pays for the research? Behavioral Finance and Analyst Ethics Star Analysts- Overconfidence and Regret Aversion Herding -The Influence of Other Analysts Other Behavioral Pitfalls Originality of Ideas Other Analyst Conflicts Conflicts with Employers Conclusion- Be Aware! PART II- Ethical Security Analysis CHAPTER 6-Investing in Companies with Ethical AccountingPractices Introduction- Reported Accounting Performance- Healthy Cynicism TheSource of Accounting Distortions-Accruals Discretionary and Non-DiscretionaryAccruals Managers Incentives to Manage Earnings Cookie Jar Reserves and Big Baths Aggressive Revenue Recognition SPEs and Hidden Debt Quality of Earnings Earnings Smoothing: Is It Ethical? Conclusion- Cash Versus Accruals- Be Skeptical! CHAPTER 7-Investing in Companies with Good Corporate Governance Practices Introduction-Corporate Governance and its Importance to Ethical Analysts Countrywide Financial Corporation- A Case of Weak Corporate Governance and Unethical Business Practices The Role of the Board- An Overview Who Makes a Good Director? Effective Board Structure Director Compensation and Shareholdings The Nominating Process, Voting Rights, and Potential Conflicts Executive Compensation- Structure and Incentives Option Grant Abuses Golden Parachutes, Golden Hand-cuffs, Golden Coffins Horizon Problems And The Firms Long-Run Profitability Shareholders Rights and The Takeover Market Conclusion- Shareholders Rights and Conflicts Appendix- Review of Stock Options CHAPTER 8-Socially Responsible Investing Introduction- Directing Financial Capital to Benefit Society Stakeholder Theory Positive and Negative Screens Socially Responsible Mutual Funds Performance- Can You Do Well By Doing Good? Shareholder Advocacy Divestment The Special Role of Pension Funds, University Endowments, and Foundations Community Investing and Micro Finance Lending Islamic Finance Conclusion- Obstacles To Doing Well While Doing Good CHAPTER 9-Cases Case #1- UBS and Morgan Stanley- An Elaborate Insider Trading Scheme Case #2- Emulex and Mark Jakob- Market Manipulation with False Information Case #3- Fidelity Traders and Gifts from Jefferies- Soliciting Brokerage from Traders Case #4- Heartland Advisors and Bond Funds- Misrepresentation of Bond Values Case #5- A.G. Edwards and Variable Annuities- An Inappropriate Investment Case #6- Charles Hintz and Sanford Bernstein-Analysts Conflicts with Personal Holdings Case #7- Nicholas Cosmo and Agape World Inc.- A Ponzi Scheme Case #8- Former CEO of NYSEs, Grassos, Pay Package Case #9 Nick Leeson and Barings Bank- Rogue Trader Case #10- Kelloggs Matched and Washed Trades- Tax Avoidance or Market Manipulation? Case # 11- Qwest Communications International - Accounting Fraud and Overstated Revenues Case #12- Refco- Misrepresentation and Hidden Debt Case #13- Salomon Brothers and the Treasury Market- Cornering the Market Case #14- Merrill Lynch and the Internet Boom- Analysts Conflicts Case #15- John Mangan and Short Selling -Inside TradingCase #16- Merrill Lynch and Bank of America Merger- Bonuses Paid to Merrill Employees -Excessive Compensation? Case #17- Canary Capital Partners LLC- Mutual Fund Abuses Case #18- Jérôme Kerviel and Société Générale- Rogue Trader Case#19- WorldCom- Capitalizing Operating Expenses, an Unethical Accounting Practice Case #20- The Squawk Box- Front Running Case #21- Morgan Stanley- Brokerage Commissions and Brokerage Abuses Case #22- Brian Hunter and Amaranth Advisors-Market manipulation of Natural Gas? Case #23- The Bayou Group- False Reporting Case #24- Morgan Stanley- Analysts Coverage and Investment Banking BusinessCase #25- Bernie Madoff- The Largest Ponzi Scheme in History? Case #26 - Enron- A Case of Extreme Hubris Case #27- UnitedHealth- Back Dating Stock Options Case #28- First Cash Financial Services- Pay Day Loans and Return Case #29 - Johnson & Johnson and the Tylenol Scare- Did Recall Hurt or Help Shareholders? Case #30- Infrastructure Funds- An SRI Investment? GLOSSARY
- ISBN: 978-0-470-43453-6
- Editorial: John Wiley & Sons
- Encuadernacion: Rústica
- Páginas: 304
- Fecha Publicación: 17/11/2010
- Nº Volúmenes: 1
- Idioma: Inglés