We're using cookies, but you can turn them off in your browser settings. Otherwise, you are agreeing to our use of cookies. Learn more in our Privacy Policy

Bridge over ocean
1 May 2007 Financial Analysts Journal Volume 63, Issue 3

Local Ethics in a Global World

  1. Meir Statman, PhD

Ethics, fairness, trust, and freedom from corruption are parts of social capital,
and social capital matters in financial markets. Investors consider not only the
information they receive but also their trust in the accuracy of the information
and the fairness of the markets in which to trade. Deficiencies in ethics and
fairness mark all countries. But surveys of the perception among students and
finance professionals of the fairness of insider trading in eight countries
indicate that deficiencies are more pronounced in some countries than in others.
Five factors are discussed that affect social capital: culture, globalization,
income, education, and law enforcement.

Read the Complete Article in Financial Analysts Journal Financial Analysts Journal CFA Institute Member Content