Applied Financial Management Course Goals Integrate finance tools

Applied Financial Management Course Goals • Integrate finance tools and techniques into real world business settings; solving business problems • Write effective business reports • Conduct and evaluate business presentations • Participate in collaborative, team settings • Bridge business school career

Financial Ethics

• Junk-bond manipulation—Michael Milken 80 s Fine paid $650 million • Salomon Brothers and Gov. Sec. Scandals– 91 Fine $290 million • Merrill Lynch vs. Orange County— 94 Fine $400 million • Ten major investment firms settled charges conflict of interest— 03 -Fine paid $1. 4 billion

Personal Finance Moral Norms Financial intermediaries Corporate Financial intermediaries Public Finance • Ethics in finance are moral norms embodied in laws and government regulation

Ethics in Financial Management • Fiduciary duties or obligation to act as an “Agent” • Competence and “Due care” • Avoiding conflict of interest • Preserving “Confidentiality” • Being “Fair” and “Accurate” • “Compliance” with applicable government regulation • “Justification” of the objective of shareholder wealth maximization

The level of ethics in a firm is a mix of individuals integrity, supportive culture, leadership, and a full understanding of the ethical codes of conduct.