The Gordon Gekko Effect: The Role of Culture in the Financial Industry /
Culture is a potent force in shaping individual and group behavior, yet it has received scant attention in the context of financial risk management and the recent financial crisis. I present a brief overview of the role of culture according to psychologists, sociologists, and economists, and then pr...
Gespeichert in:
- Weitere Titel:
- Gordon Gekko Effect
- 1. Verfasser:
- Körperschaft:
- Format:
- Elektronisch E-Book
- Sprache:
- Englisch
- Veröffentlicht:
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Cambridge, Mass.
National Bureau of Economic Research
2015.
- Zusammenfassung:
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Culture is a potent force in shaping individual and group behavior, yet it has received scant attention in the context of financial risk management and the recent financial crisis. I present a brief overview of the role of culture according to psychologists, sociologists, and economists, and then present a specific framework for analyzing culture in the context of financial practices and institutions in which three questions are answered: (1) What is culture?; (2) Does it matter?; and (3) Can it be changed? I illustrate the utility of this framework by applying it to five concrete situations--Long Term Capital Management; AIG Financial Products; Lehman Brothers and Repo 105; Société Générale's rogue trader; and the SEC and the Madoff Ponzi scheme--and conclude with a proposal to change culture via "behavioral risk management."
- Umfang:
- 1 online resource: illustrations (black and white);
- Anmerkungen:
- June 2015.
- Schlagworte: