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. True to the interactive and interdisciplinary nature of this class, and so as to make the theory more tangible, the class will rely on the following elements:

• Lectures looking at Ethics in the context of:
  • Financial Theory
  • Financial Markets
  • Financial Services
  • Financial Management
  • CFA Standarts of Practice
• An INSEAD case study (Societe Generale (A): The rouge trader)
• An in-class simulation game
• A high profile guest speaker: Kweku Adoboli, a former UBS-trader (tentative date Fri 15 December 2017).

Conveying theory will take approximately 75%, while case studies and class discussions may take approximately 25% of the time.

http://moodle.unil.ch/course/view.php?id=9442

References

• Boatright, John R. (editor), 2010, Finance Ethics, John Wiley & Sons, Hoboken, New Jersey
• INSEAD case study (Societe Generale (A): The rouge trader)
• 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.