Objectives

The primary objective of this course is to develop a profound understanding of where ethical issues play a role in finance, how managerial decisions affect the market value of the firm, how market participants and management can influence the behaviors of investors by, for example exploiting corporate finance knowledge. The secondary goal is to provide judgment skills on situations where finance and ethics may conflict. While the theoretical foundation is the prime element of this course, there will be ample and tangible reference to recent developments in the capital markets.

Contents

As Finance Ethics is a field in development, the course is interdisciplinary in nature, structured along the lines of the required literature and discusses individual topics so as to highlight the variety of issues facing the finance and investment community and to create a handle for getting to grips with the topic. Especially the relationship of ethics versus the known topics in finance such as finance and risk theory, financial markets, financial service management and financial management is highlighted.

At the end of the training the student should be able to:

- Recognize ethical dilemmas's

- Apply moral philosophy to a variety of typical problems in finance

- Apply moral analytics to ethical dilemmas

- Classify the standards set by the CFA Institute, especially for the investment industry

- Recognize real-life situations in which ethical dilemmas in finance occur

- Deduct where morality in finance occurs

- Recognize how ethical-decision making in finance works

Transferable skills

- Act on the basis of an ethical reasoning

- Decision-making

- Apply knowledge to new situations

References

• “Ethics in Finance”, 3rd edition, by John Boatright (Wiley Blackwell)
• "An Introduction to Moral Philosophy", 1st edition, by Jonathan Wolff (W.W. Norton & Company)
• Standards of Practice Handbook, CFA 11th edition

Evaluation

First attempt

Exam:

Written 2h00 hours

Documentation:

Not allowed

Calculator:

Not allowed

Evaluation:

Exam with multiple choice questions. An overall grade of 4 or higher is required for passing the course and receiving credits.

Final written exam

Retake

Exam:

Written 2h00 hours

Documentation:

Not allowed

Calculator:

Not allowed

Evaluation:

Exam with multiple choice questions. An overall grade of 4 or higher is required for passing the course and receiving credits.