Download Lec 1 An Overview of Issues & Ethics in Finance

FIN657
Issues & Ethics in Finance
Lecture 1:
- Introductory sessions
- Briefing on course syllabus
- An Overview of Issues & Ethics in
Finance
Lecturer: Assoc Prof Dr Noriza Mohd Saad
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• Subject Code: FIN657
• Subject Name: ISSUES AND ETHICS IN FINANCE
• Pre-Requisite Courses: N/A
• Course Description: The course is designed to enhance students understanding
of the finance functions and ethics; to be able to analyze and understand the
changes and events that are taking place in the field of finance; to suggest
financial tools to solve these problems.
• Learning outcomes: Students are required to read, search, write, discuss,
analyze and present these issues in class. They will do this individually and in
groups. A quiz will be conducted at the end of the course to encourage students
to keep up to date with the current issues in finance. The assignment or the
article review, presentations and participation, will be evaluated on a number
of criteria as outlined in the rubrics provided by the faculty. Please refer to
notes on OBE available in the Faculty’s website.
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1.
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Chapter 1
An Overview of Ethics.
The Importance of Ethics in Finance.
The Difference between Ethics, Rules and Regulations.
2. Chapter 2
Roles and Responsibilities of Individuals, Corporations and Governments on
Ethics.
• Review the Roles and Responsibilities of Stakeholders.
• Discuss the function of ethics watch group - rating agencies, regulators
(BNM, SC - Malaysia Code on Corporate Governance (MCCG), minority
shareholders watch group (MWSG)).
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3. Chapter 3 Roles and Responsibilities of Individuals, Corporations and
Governments on Ethics
• Class discussion on current issues in finance/ethics that received wide media
coverage in recent weeks. for instance; issue of Covid 19 Pandemic affect the
corporate performance and share price.
• Contemporary issues in finance lead to ethical behavior. for instance; issue of
cryptocurrency trading and bitcoin.
4. Chapter 4 Theory in Finance
• Relevance theory in finance ie. Institutional Theory, Agency Theory, Theory of
property rights, Theory of the firm, Efficient market hypothesis, Capital
Structure Substitution Theory and etc.
• How the selected theory in finance relate with the ethical issues ie. agency
theory.
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5. Chapter 5 Corporate Governance and Incentives.
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The international governance debate.
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Optimal versus actual compensation policies. for instance; BOD Remuneration
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Class discussion on current issues in finance/ethics that receive wide media coverage in recent weeks.
for instance; issues of integrity, accountability, abuse power, voting rights etc..
6. Chapter 6-8 General Topics
• Discussion and individual presentation on suggested topics of ethics in finance. Case Studies on Ethical
Practices in Finance.
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Ethical Dilemmas and Different Forms of Unethical Behaviours.
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Provide review and example on ethical dilemmas and unethical behaviours such as conflict of interest,
false disclosure, insider trading, illegal trading, money laundering, scams, cybercrime - white collar
crime.
(Relate case studies with the theory in finance - if any).
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7. Chapter 9-11 General Topics
• Discussion and individual presentation on suggested topics. Case Studies
on Issues in Finance
• Discussion and individual presentation on current issues in finance. i.e.
Financial Technology, financial innovation, Artificial Intelligence (AI) in
Banking and Finance.
(Relate case studies with the theory in finance - if any).
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8. Chapter 12-14 General Topics
• Discussion and group presentation on current issues. i.e. Issues in
Finance: Financial Crisis worldwide.
• Provide a review and an example on Financial crisis around the world ie.
Asian Financial Crisis 1997, Subprime Crisis 2008, Black Wednesday,
1992 UK Black Wednesday, 1987 US Black Monday, 2008 Spanish
Financial Crisis, 2008 Greece Financial Crisis, 2008 Icelandic Financial
Crisis, 2014 Russian Financial Crisis, 1994 Mexican Peso Crisis, 19982002 Argentina Great Depression.
(Relate case studies with the theory in finance - if any).
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COURSE ASSESSMENT
Assignment Self-reflection report is an individual assignment based on a newspaper
and finance magazines specifically discusses the global finance issues. .......20%
Assignment Current Issues on Ethics in Finance Locally and Internationally ..... 20%
Video Presentation .... 30%
Test ..... 30% - will be handle after chap 5
TOTAL = 100%
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REFERENCES & READING MATERIALS
• Tirole Jean 2006, Theory of Corporate Finance, 1 Ed., 16, Princeton University Press
Princeton USA [ISBN: ISBN978069112]
• B. Espen Eckbo 2011, Handbook of Empirical Corporate Finance, 1 Ed., 18, Elsevier North
Holland [ISBN: 9780080932118]
• www.sc.com.my Malaysia Securities Commissionwww.sc.com.my, Securities Commission,
Securities Commission
http://www.sc.com.my
• www.bursa.com.my Bursa MalaysiaBursa Malaysia, Bursa Malaysia, Bursa Malaysia
http://www.bursa.com.my
• www.bnm.com.my Bursa MalaysiaBursa Malaysia, Bursa Malaysia, Bursa Malaysia
http://www.bnm.com.my
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Issues & Ethics in Finance - Intro
• Issues in Finance
• Ethics in Finance
• Relationship between Issues & Ethics
• Impact to the individual, company, society and
country
• Issues & ethics in conventional capital market vs
Islamic capital market
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Continue for chapter 1 in lecture 2
SHORT LETTER for pre-reading:
• Define the word ethics in finance.
• Highlight the important of ethics towards organization.
• Financial issues arise impact from non-compliance
towards code of best practice (eg; MCCG) and Shariah
Principles.
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