This book, part of the Robert W. Kolb Series in Finance, is an essential collection of the latest research, theory, and practice on ethics in finance. Today more than ever, ethics is critically important to the actions and interactions of finance professionals and market participants. Finance Ethics is intended to advance the understanding and appreciation of the most important ethical issues in financial theory and practice and to encourage academic research and instruction by scholars in both finance and business ethics. This collection draws together the contributions of a wide range of distinguished scholars in the field, all presenting the most cutting-edge best practices for varied industry participants, with special attention paid to the larger firms and everyone's role within the framework of a business trying to make profits.The contributors examine key issues in financial markets, financial services, financial management, and finance theory, and the volume includes chapters on market regulation, due diligence, reputational risk, insider trading, derivative contracts, hedge funds, mutual and pension funds, insurance, socially responsible investing, microfinance, earnings management, risk management, bankruptcy, executive compensation, hostile takeovers, and boards of directors.These chapters discuss, for example, the main arguments against insider trading, including those based on a consideration of its alleged harmful consequences-as well as the difficulties in providing a cogent rationale for legal prohibitions. They look at the marketing of financial products to individuals, focusing on three areas that are subject to the greatest controversy: home mortgages, credit cards, and so-called payday loans.

And they set out the ethical issues for both private and public pension plans. In addition to exploring some of the gray areas of fiduciary duty in pension fund management, they also discuss the ethics of shareholder activism and social investing, especially by public pension plans.Although finance ethics may lack recognition as a distinct field of study, the chapters in this volume show that the individual topics involved have long been examined from an ethical point of view and are rich in ethical content. For both academics and practitioners, Finance Ethics skillfully explains the need for ethics in the personal conduct of finance professionals and the operation of financial markets and institutions.