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Download The Death of Corporate Reputation: How Integrity Has Been Destroyed on Wall Street (Applied Corporate Finance) eBook

by Jonathan Macey

Download The Death of Corporate Reputation: How Integrity Has Been Destroyed on Wall Street (Applied Corporate Finance) eBook
ISBN:
0133039706
Author:
Jonathan Macey
Category:
Americas
Language:
English
Publisher:
FT Press; 1 edition (March 23, 2013)
Pages:
304 pages
EPUB book:
1318 kb
FB2 book:
1527 kb
DJVU:
1913 kb
Other formats
lrf doc txt mbr
Rating:
4.8
Votes:
156


The Death of Corporate R. .has been added to your Cart .

The Death of Corporate R. Jonathan R. Macey is Sam Harris Professor of Corporate Law, Corporate Finance, and Securities Law at Yale University and Professor in the Yale School of Management. The point of this book is to explain why that theory has lost its explanatory power when it comes to understanding the way Wall Street works today.

Why traditional methods of fraud deterrence have failed in finance

Why traditional methods of fraud deterrence have failed in finance. The unintended consequences of aggressive overregulation-and how to fix them. It’s not just the banks: touring post-reputation Wall Street. In this book, Jonathan Macey shows how that time is long gone, that companies who have lost their reputations have not lost business and sometimes even gained because of wrong-doing or even illegal activity.

In The Death of Corporate Reputation, Yale's Jonathan Macey reveals . This has changed completely

In The Death of Corporate Reputation, Yale's Jonathan Macey reveals the real, non-intuitive reason, and offers a new path forward. This has changed completely. The rough and tumble norms of the market-place have replaced the long-standing reputational model in .

The Death of Corporate Reputation: How Integrity Has Been Destroyed on Wall Street. How has it failed to enforce the standards of conduct needed to reassure customers?

The Death of Corporate Reputation: How Integrity Has Been Destroyed on Wall Street. How has it failed to enforce the standards of conduct needed to reassure customers? Get our daily newsletter. That is the vexing question at the heart of The Death of Corporate Reputation by Jonathan Macey, a professor at Yale Law School. It was not always thus, he reminds readers. Citing just one example from a recent (if bygone) era, in 1994 Bankers Trust, one of America’s largest financial institutions, sold toxic swaps to two clients.

Jonathan R. Macey is Sam Harris Professor of Corporate Law, Corporate Finance, and Securities Law at Yale . The answers provided in "The Death of Corporate Reputation" are no and yes. Wall Street firms used to care about their reputations but they don't any more. He is a member of the Board of Directors of the Yale Law School Center for the Study of Corporate Governance, a member of the Faculty Advisory Group of Yale’s Millstein Center for Corporate Governance and Performance, and Chairman of Yale’s Advisory Committee on Investor Responsibility.

There was a problem with saving your item(s) for later. You can go to cart and save for later there. Generated at Fri, 02 Aug 2019 22:22:37 GMT exp-ck: 1; xpa: 9fMD8AtYtNGLaDtQsqy UQzZSWf04jZKbxe JLJDiWtnIkkjcslYUGYoG1SCtI007; Electrode, Comp-351027664, DC-prod-dfw2, ENV-prod-a, PROF-PROD, VER-19. 16, 3663, 546d7e83b95, Generated: Fri, 02 Aug 2019 22:22:37 GMT.

In The Death of Corporate Reputation, Yale's Jonathan Macey reveals the real .

In The Death of Corporate Reputation, Yale's Jonathan Macey reveals the real, non-intuitive reason, and offers a new path forward. This compelling book will drive the debate about the financial crisis and financial regulation for years to come - both inside and outside the industry.

Reputation How Integrity Has Been Destroyed on Wall Street Jonathan . His many books include Corporate Governance: Promises Kept, Promises Broken and Macey on Corporation Law.

Reputation How Integrity Has Been Destroyed on Wall Street Jonathan R. Macey. Vice President, Publisher: Tim Moore.

JPMorgan And Professor Jonathan Macey's book, The Death Of Corporate Reputation .

JPMorgan And Professor Jonathan Macey's book, The Death Of Corporate Reputation: Involvement in scandal today has little impact on the big banks. Reputation has become irrelevant. Only a few decades ago, such offenses would have irreparably stained the reputation of a leading Wall Street firm and caused clients to depart en masse to a reputable firm, effectively putting the firm out of business. Now as Jonathan Macey writes in his excellent new book, The Death of Corporate Reputation: How Integrity Has Been Destroyed on Wall Street (2013), there is no other reputable firm to go to. Cosi Fan Tutti.

Why did the financial scandals really happen? Why are they continuing to happen? In The Death of Corporate Reputation, Yale's Jonathan Macey reveals the real, non-intuitive reason, and offers a new path forward. For over a century law firms, investment banks, accounting firms, credit rating agencies and companies seeking regular access to U.S. capital markets made large investments in their reputations. They treated customers well and sometimes endured losses in transactions or business deals in order to sustain and nurture their reputations as faithful brokers and “gate-keepers.” This has changed completely . The existing business model among leading participants in today’s capital markets no longer treats customers as valued clients whose trust must be earned and nurtured, but as one-off “counter-parties” to whom no duties are owed and no loyalty is required . The rough and tumble norms of the market-place have replaced the long-standing reputational model in U.S. finance.

This book describes the transformation in American finance from the old reputational model to the existing laissez faire model and argues that the change came as a result of three factors: (1) the growth of reliance on regulation rather than reputation as the primary mechanism for protecting customers and (2) the increasing complexity of regulation, which made technical expertise rather than reputation the primary criterion on which customers choose who to do business with in today’s markets ; and (3) the rise of the “cult of personality” on Wall Street, which has led to a secular demise in the relevance of companies’ reputations and the concomitant rise of individual “rain-makers” reputation as the basis for premium pricing of financial services. This compelling book will drive the debate about the financial crisis and financial regulation for years to come -- both inside and outside the industry.

  • Goldfury
Discusses the death of the general partnership through the exposure limiting vehicles of the limited liability partnership and corporation that has lead to reduced skin in the game to loss if the firm stumbles and falls. These new company forms operate in a post SOX and other regulation world that drives funding via legal mandate rather than reputation protecting incentives leading to little long term upside for the accounting or legal firm to spend its limited resources to build its corporate reputation. This crazy system is all monitored by rating agencies compromised by greed with allegiance to the companies they are rating rather than the investing populace relying on their integrity to help make wise decisions. That populace are largely lemmings who will follow the ratings even though some know they are bad ratings just in a effort to follow the animal instincts of the crowd and take advantage of the irrational market moves. A true house of cards that will fall over again and again.
  • Yellow Judge
I knew a lot of what Macey advocated, however the pulling together into a comprehensive organized work, made this book valuable to me. I have recommended it to an affiliate organization of financial services with 2,000 members. It is important to understand how the financial world and what you hear and are told has to be comprehended in view of the many conflicting messages and overt propaganda that exists. You are told so many things, that actions and unethical business activity can be easily overlooked.

Macey clearly lays out the current state of reputation and business culture, which actually appears all over American culture and the reputation of all institutions.
  • Cala
Macey, a professor in both the Yale Law School and Yale School of Management, has written a number of scholarly articles on the same theme as this book. Not having yet read any of the articles, my observations here are focused on the book’s presentation of the argument rather than on the argument’s validity.

Macey writes at the beginning of the book, “Economists developed an elegant and highly useful grand theory of reputation to explain why having a good reputation is critical to success, particularly for companies in the financial sector, like insurance companies and banks. The point of this book is to explain why that theory has lost its explanatory power when it comes to understanding the way Wall Street works today.” His thesis, in short, is that financial firms (and gatekeepers such as accounting firms, law firms, and credit rating agencies) no longer behave the way the “economic theory of behavior” (ETR) says they should.

The book’s intended audience is clearly broader than that for Macey’s scholarly papers. This being the case, it is odd that Macey provides us with no background on ETR. I didn’t have to search hard to find out that ETR is an application of game (or rational choice) theory. The book makes no mention of this.

Furthermore, ETR uses “reputation” in a sense that is synonymous with “trust.” But there is another sense, call it “stakeholder reputation,” that is related to but distinct from “reputation as trust.” “Stakeholder reputation” is what we might learn from a public opinion survey. Despite the distinction, Macey slips back and forth between the two throughout the book.

Without an exposition of ETR, we also have to take it on faith that ETR did in fact have explanatory power at one time, even if it no longer does. However, Macey’s own examples undercut that assumption. He writes in Chapter 5, for example, that the collapse of Drexel Burnham Lambert “is important because it marks the death knell of the traditional economic theory of reputation.” That is because, although the firm failed, many of its employees went on to successful careers at other financial firms. By contrast, Salomon Brothers’ failure exemplified ETR because the firm’s leaders also failed. Except that Salomon Brothers’ failure post-dated Drexel’s.

In Chapter 6, Macey writes that, in ETR companies “willingly and voluntarily contract for an pay for audit services.” But public companies have not “willingly and voluntarily” contracted for external audits since passage of the 1933 Securities Act. So ETR could still (theoretically) have explanatory power with regard to pre-1933 Wall Street behavior, ETR certainly can’t explain the post-WWII economic boom in the U.S., as Macey would like it to.
  • olgasmile
These are the main questions addressed by this book. The answers provided in "The Death of Corporate Reputation" are no and yes. Wall Street firms used to care about their reputations but they don't any more. Big Wall Street companies like Goldman Sachs, Standard & Poor's don't need to cultivate reputations for integrity, and they can make a lot more money by cutting ethical corners than by playing fair and square, so that's what they do. This business model is far different from the business model just 30 years ago, when companies cared a lot about their reputations, and went to great lengths to protect them. We need to go back to the old business model for many important reasons, not the least of which is that our economy depends on it.
  • Quashant
such a good stuff, but i do not know i have to reply so many words to submit my review. i love amazon it is a best place to shopping and consume,
  • Kigul
Whether you agree with everything he says or not, he provides an invaluable framework to understand and evaluate the interrelationship between reputation and regulation and their contribution to the financial crisis and economic downturn. His analysis provides insights that if acted upon in a thoughtful way by those in leadership positions in business and government would improve prospects for a durable recovery and perhaps even an economic renaissance. Both are totally out of reach today as there appears a redoubling of commitment to the mistakes and mistaken ideas of the past.
  • IWantYou
Best book on the BS of corporations. I was screwed over by a large corporation, and if you have you should read this book
This is an excellent book about ethics in our modern society. It should be required reading in all business schools accross America. It rings true in today's financial economy.