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Management of financial market scandals – regulatory and values based approaches

Management of financial market scandals – regulatory and values based approaches Purpose – The paper aims to discuss the management of financial market scandals using two different approaches – regulatory and values‐based. Design/methodology/approach – The paper discusses the motivations behind financial scandals to occur and then explains in detail both the approaches. The paper first presents the elements of the regulatory approach. Using the teachings of Bhagavan Sri Sathya Sai Baba, the values‐based approach are delineated. The paper also compares the two approaches and identifies their respective utilities. Findings – While both the regulatory and values based approaches have their own utilities; stressing the values‐based approach helps with preventing financial scandals on a sustainable basis. Practical implications – The practical implication is that it is necessary to stress the evocation of human values among investors and capital market intermediaries so that scandals can be avoided. Social implications – The social implication of the paper is that values evocation is very important to tackle the behavioural motivations behind financial scandals. Unless values are evoked, the root causes of financial scandals will not be removed. In such cases, regulation will have only a limited effect. Originality/value – The paper uses the philosophy and teachings of Bhagavan Sri Sathya Sai Baba to develop value guidelines to prevent financial scandals. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Humanomics Emerald Publishing

Management of financial market scandals – regulatory and values based approaches

Humanomics , Volume 27 (3): 13 – Aug 30, 2011

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Publisher
Emerald Publishing
Copyright
Copyright © 2011 Emerald Group Publishing Limited. All rights reserved.
ISSN
0828-8666
DOI
10.1108/08288661111165204
Publisher site
See Article on Publisher Site

Abstract

Purpose – The paper aims to discuss the management of financial market scandals using two different approaches – regulatory and values‐based. Design/methodology/approach – The paper discusses the motivations behind financial scandals to occur and then explains in detail both the approaches. The paper first presents the elements of the regulatory approach. Using the teachings of Bhagavan Sri Sathya Sai Baba, the values‐based approach are delineated. The paper also compares the two approaches and identifies their respective utilities. Findings – While both the regulatory and values based approaches have their own utilities; stressing the values‐based approach helps with preventing financial scandals on a sustainable basis. Practical implications – The practical implication is that it is necessary to stress the evocation of human values among investors and capital market intermediaries so that scandals can be avoided. Social implications – The social implication of the paper is that values evocation is very important to tackle the behavioural motivations behind financial scandals. Unless values are evoked, the root causes of financial scandals will not be removed. In such cases, regulation will have only a limited effect. Originality/value – The paper uses the philosophy and teachings of Bhagavan Sri Sathya Sai Baba to develop value guidelines to prevent financial scandals.

Journal

HumanomicsEmerald Publishing

Published: Aug 30, 2011

Keywords: Financial scandals; Financial regulation; Values based approach; Financial management; Corruption; Management philosophy

References