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Unethical dilemmas in derivatives practice

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  • Alqatawni, Tahsen

Abstract

The current global economic crisis and its aftermath resulted of unethical practices of the companies' leaders and their financial management by improper usage of financial derivative, which turned the financial derivatives into a source of gambling, and spread to extremely large volume. Although, the unethical practices from a financial institution observing lack of ethics is made due to self interest that maximizes immediate profit putting shareholder wealth and small investor at risk rather than maximization of shareholder value.

Suggested Citation

  • Alqatawni, Tahsen, 2013. "Unethical dilemmas in derivatives practice," MPRA Paper 47407, University Library of Munich, Germany, revised 10 Jun 2013.
    • Handle: RePEc:pra:mprapa:47407
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    File URL: https://mpra.ub.uni-muenchen.de/47407/1/MPRA_paper_47407.pdf
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    References listed on IDEAS

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    1. Yang Xu & Alicia Liwei Jiang & Neil Fargher & Elizabeth Carson, 2011. "Audit Reports in Australia during the Global Financial Crisis," Australian Accounting Review, CPA Australia, vol. 21(1), pages 22-31, March.
    2. Saha, Malayendu, 2013. "The Ethical Dimensions Of Financial Crisis In The World Of Globalized Finance," MPRA Paper 45565, University Library of Munich, Germany, revised 06 Apr 2013.
    3. Giulia De Rossi & Tiziano Vargiolu, 2010. "Optimal prepayment and default rules for mortgage-backed securities," Decisions in Economics and Finance, Springer;Associazione per la Matematica, vol. 33(1), pages 23-47, May.
    4. Victor Lewis & Kenneth D. Kay & Chandrika Kelso & James Larson, 2010. "Was The 2008 Financial Crisis Caused By A Lack Of Corporate Ethics?," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 4(2), pages 77-84.
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    Cited by:

    1. Alqatawni, Tahsen, 2013. "The Impact of the Dodd-Frank Act on Small Banks," MPRA Paper 51109, University Library of Munich, Germany.

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    More about this item

    Keywords

    Unethical; Dilemmas; Derivatives; global financial; crisis; gambling;
    All these keywords.

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises

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