Infectious Greed: Restoring Confidence in America's Companies - Hardcover

Nofsinger, John R.; Kim, Kenneth A.

Hardcover

ISBN 10: 0131406442 ISBN 13: 9780131406445

Publisher: Financial Times/ Prentice Hall, 2003

Synopsis

In Infectious Greed, two leading financial experts offer a powerful new explanation of why the corporate scandals happened―and propose market-driven reforms that don’t just “patch” the system but fix it for generations to come. Discover how the system came to provide massive incentives for malfeasance by CEOs, boards, auditors, analysts, and investment houses―and learn how those “bad” incentives can be replaced by even more powerful incentives for integrity.

About this title

About the Author:

JOHN NOFSINGER, finance professor at Washington State University, is author of Investment Madness, The Psychology of Investing, and Investment Blunders (Financial Times Prentice Hall). Widely acknowledged as one of the world’s leading experts in investor psychology and behavioral finance, he has been quoted in financial media including The Wall Street Journal, Fortune, BusinessWeek, SmartMoney, Bloomberg, and CNBC, and other media from The Washington Post to Wired.com. Nofsinger’s 1997 paper “Herding and Feedback Trading by Institutional Investors” (written with Richard W. Sias) was awarded “Best of the Best” and “Best Paper in Investments” by the Financial Management Association. He has also done advanced research for the New York Stock Exchange and the Association for Investment Management and Research.

KENNETH KIM is a finance professor at the State University of New York at Buffalo. His work has been published in the Journal of Finance, the Journal of Corporate Finance, the Journal of Banking and Finance, and other leading journals. Kim is co-author of the textbook Global Corporate Finance, and he has served as a financial economist at the U.S. Securities and Exchange Commission, where he worked on diverse issues including M&A regulation.

Synopsis:

Financial and corporate scandals have led to a fundamental crisis in the American corporate system: one in which investors believe they have been thoroughly betrayed by the managers, boards, accountants, and investment advisors they once trusted. The fundamental challenge is to restore confidence, but how? Tougher laws, while essential, aren't enough: they've already been passed, and investors are as disillusioned as ever. In Infectious Greed, John Nofsinger and Kenneth A. Kim begin with an insightful assessment of what really happened: how executive compensation systems have led to unethical and greedy behavior; and how monitoring systems and regulators failed. Next, they offer systematic solutions that align incentives to promote desirable actions and discourage unethical behavior. Their solutions build on what's best about capitalism, and can truly restore the investor confidence that is essential to the system's long-term success.

About this edition

• Publisher: Financial Times/ Prentice Hall
• Publication date: 2003
• ISBN 10: 0131406442
• ISBN 13: 9780131406445
• Binding: Hardcover
• Number of pages: 320