Free PDF Infectious Greed: Restoring Confidence in America's Companies, by John R. Nofsinger, Kenneth A. Kim
Infectious Greed: Restoring Confidence In America's Companies, By John R. Nofsinger, Kenneth A. Kim. Just what are you doing when having extra time? Chatting or browsing? Why do not you attempt to review some e-book? Why should be reviewing? Checking out is among fun and also delightful activity to do in your downtime. By checking out from several sources, you can locate new details as well as experience. Guides Infectious Greed: Restoring Confidence In America's Companies, By John R. Nofsinger, Kenneth A. Kim to check out will many beginning with clinical books to the fiction publications. It indicates that you could check out guides based on the necessity that you intend to take. Naturally, it will be different and also you could read all book kinds at any time. As right here, we will reveal you a publication need to be checked out. This publication Infectious Greed: Restoring Confidence In America's Companies, By John R. Nofsinger, Kenneth A. Kim is the choice.
Infectious Greed: Restoring Confidence in America's Companies, by John R. Nofsinger, Kenneth A. Kim
Free PDF Infectious Greed: Restoring Confidence in America's Companies, by John R. Nofsinger, Kenneth A. Kim
Infectious Greed: Restoring Confidence In America's Companies, By John R. Nofsinger, Kenneth A. Kim. The established technology, nowadays support every little thing the human demands. It consists of the day-to-day activities, tasks, office, home entertainment, and also a lot more. Among them is the fantastic internet link and computer system. This condition will certainly reduce you to sustain one of your hobbies, reviewing habit. So, do you have going to read this e-book Infectious Greed: Restoring Confidence In America's Companies, By John R. Nofsinger, Kenneth A. Kim now?
Why ought to be Infectious Greed: Restoring Confidence In America's Companies, By John R. Nofsinger, Kenneth A. Kim in this website? Obtain a lot more earnings as just what we have actually informed you. You could locate the various other relieves besides the previous one. Relieve of getting guide Infectious Greed: Restoring Confidence In America's Companies, By John R. Nofsinger, Kenneth A. Kim as what you want is likewise supplied. Why? We provide you numerous kinds of guides that will not make you really feel bored. You could download them in the web link that we give. By downloading Infectious Greed: Restoring Confidence In America's Companies, By John R. Nofsinger, Kenneth A. Kim, you have taken the right way to choose the simplicity one, compared with the inconvenience one.
The Infectious Greed: Restoring Confidence In America's Companies, By John R. Nofsinger, Kenneth A. Kim has the tendency to be terrific reading book that is easy to understand. This is why this book Infectious Greed: Restoring Confidence In America's Companies, By John R. Nofsinger, Kenneth A. Kim comes to be a preferred book to check out. Why do not you really want become one of them? You could appreciate reviewing Infectious Greed: Restoring Confidence In America's Companies, By John R. Nofsinger, Kenneth A. Kim while doing other tasks. The visibility of the soft data of this book Infectious Greed: Restoring Confidence In America's Companies, By John R. Nofsinger, Kenneth A. Kim is type of getting encounter easily. It includes how you should conserve guide Infectious Greed: Restoring Confidence In America's Companies, By John R. Nofsinger, Kenneth A. Kim, not in shelves naturally. You might save it in your computer device as well as device.
By saving Infectious Greed: Restoring Confidence In America's Companies, By John R. Nofsinger, Kenneth A. Kim in the gizmo, the way you check out will also be much simpler. Open it and begin checking out Infectious Greed: Restoring Confidence In America's Companies, By John R. Nofsinger, Kenneth A. Kim, easy. This is reason that we suggest this Infectious Greed: Restoring Confidence In America's Companies, By John R. Nofsinger, Kenneth A. Kim in soft file. It will not disturb your time to get the book. Furthermore, the on the internet heating and cooling unit will certainly also reduce you to search Infectious Greed: Restoring Confidence In America's Companies, By John R. Nofsinger, Kenneth A. Kim it, also without going somewhere. If you have connection web in your workplace, residence, or gadget, you can download and install Infectious Greed: Restoring Confidence In America's Companies, By John R. Nofsinger, Kenneth A. Kim it directly. You could not likewise wait to obtain guide Infectious Greed: Restoring Confidence In America's Companies, By John R. Nofsinger, Kenneth A. Kim to send out by the seller in various other days.
Topics include: The Failure of Executives, The Failure of Monitoring Systems, Shortcomings in Enforcement and Investor Activism, and Restoring Confidence.
- Sales Rank: #4808861 in Books
- Published on: 2003-01-23
- Original language: English
- Number of items: 1
- Dimensions: 9.30" h x 1.10" w x 6.40" l,
- Binding: Hardcover
- 320 pages
From the Back Cover
Financial scandals have led to a fundamental crisis in the American corporate system: 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 finger-pointing and tougher laws simply won’t be enough.
John Nofsinger and Kenneth Kim begin with an insightful assessment of what really happened: how executive compensation systems have led unethical and greedy behavior, and why monitoring systems and regulators failed so completely. Next, they identify powerful reforms that realign incentives to actively promote integrity and discourage malfeasance. In so doing, they offer the first real prescription for restoring investor confidence in both the short- and long-term—and for getting the U.S. economic system back on track.
Investor trust: the U.S. economy’s “secret ingredient” Why restoring investor confidence is crucial to restoring economic vigor Why the corporate scandals really happened Greed doesn’t explain everything Who did what, and how they did it CEOs, boards, auditors, analysts, investment firms: a realistic performance assessment Not just laws: a market-driven approach to reform Incentive-based reforms that will really workRestoring investor confidence: a tough, realistic, incentive-driven plan.
“Nofsinger and Kim have written a book that is both timely and important. Encompassing issues from boards of directors to accountants to analysts, it is a clear exposition and analysis of topics that have filled the front pages of daily newspapers for the last year.”
— Erik Sirri, Babson College and former Chief Economist of the U.S. Securities and Exchange Commission
Enron. Andersen. WorldCom. Tyco. Adelphia. Corporate scandals have shaken investor confidence more than any event since the Great Depression. Without investor trust, American capitalism can never regain the vigor that has made the United States the world’s most dynamic economy. In Infectious Greed, two financial experts offer a powerful new explanation of why the scandals happened—and realistic solutions that leverage the immense power of markets and self-interest.
John Nofsinger and Kenneth Kim show how the system came to provide massive incentives to greedy CEOs, ignorant boards, willfully blind auditors, and dishonest investment houses. They also show how those “bad” incentives can be replaced by even more powerful incentives for honest stewardship and counsel—and how the right incentives will do more to restore investor trust than politicians ever could.
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.
Excerpt. © Reprinted by permission. All rights reserved.
Preface
“Why did corporate governance checks and balances that served us reasonably well in the past break down? At root was the rapid enlargement of stock market capitalizations in the latter part of the 1990s that arguably engendered an outsized increase in opportunities for avarice. An infectious greed seemed to grip much of our business community.”
—Alan Greenspan, Federal Reserve Chairman, Speech to Congress, July 16, 2002
Chairman Greenspan’s comments lead to some very intriguing questions. What are the “corporate governance checks and balances” that he spoke of? How and why did they fail us? Can this breakdown ever happen again?
Answering these questions is what this book is all about. We refer to the checks and balances as executive incentives and corporate monitors. Indeed, there are many participants in the corporate governance system. Although the corporate scandals take on specific names and faces (like Andrew Fastow, Martha Stewart, Enron, Arthur Andersen, and WorldCom), the problem actually involves a whole system that either allowed the misdeeds or failed to catch them.
It might be convenient to blame one group of people or another. For example, CEOs and other top executives have been blamed for being greedy, but they weren’t the only ones who acted greedily. Many politicians and the media have blamed auditors, but they weren’t the only ones who failed to monitor the companies. The problem was a breakdown of the system. For example, a board of directors, which was elected by the shareholders, gave the CEO and other executives stock options. This motivated them to maximize the stock price at a specific point when they could cash in the options for millions of dollars. The CEO then talked up his or her company to analysts. The captive analysts, impressed with the business, assigned a buy rating and hyped the stock. To meet the expectations, the CEO demanded that the accounting department manufacture paper profits. Solutions also came from consultants and often involved investment bankers. These perilous actions were either okayed or overlooked by the corporate lawyers and the auditors. Any one of these groups could have put a stop to the shenanigans, but didn’t. Why not? In this book, we thoroughly discuss the incentives, conflicts, and actions of each of the participants in the corporate system.
Some of the problems had been developing for many years. The Securities and Exchange Commission (SEC) knew about some of the problems but failed to act to stop them. Indeed, in the middle and late 1990s, the government enacted laws that reduced investor protection. When the scandals broke in 2001 and 2002, however, politicians were then lining up to speak against the “evil doers,” the greedy corporate executives—a 180-degree turnaround. And, as if by script, they worked fast to enact new laws and to restore investor confidence. New laws were passed, but confidence hasn’t been restored. Why not? Is it that the laws that were passed were not as effective as they could have been? People are naturally skeptical of these new laws, and their skepticism may not be unfounded as the participants in the corporate governance system are some of the largest donors to political campaigns. Auditing firms, investment banking firms, corporate lawyers, and the public companies themselves donate tens of millions of dollars to the two major political parties per election cycle. Should we really believe that these politicians are turning their backs on those who have made donations? This book exposes why many of the new laws and policies will only be marginally effective in improving the system.
We recognize that these new proposals are an important part of the process to restore investor confidence, but where the creators of these solutions fall short is their inability to recognize that the American corporate form of business is an integrated system with many parts. We should first realize, however, that this system has allowed the U.S. economy to become the largest and strongest in the world. Therefore, the basic system is a good one that deserves to be preserved, but it does have its problems that can be fixed. The best solutions neither overburden the basic system nor overtax or unnecessarily scare the people. After all, we want our capitalist system to continue to churn out new jobs, wealth, and revenue far into the future. In this book, we propose some incentive-driven solutions that fit within the current system to make it better. Combining our incentive-driven solutions with the punishment and regulation-based solutions that have been proposed from the government should make the system not only whole again, but better.
If you own any stocks, either as an active investor or through your retirement savings, then this book was very much written for you. The group with the greatest interest in monitoring management is the shareholders themselves. The American investor has become disengaged from the company he or she owns. Too often, investors take little interest in the inner workings of the corporation. If something about a company upsets an investor, he or she simply sells the stock and buys a different one. The dramatic decline in commission costs lends itself to this apathy. If shareholders do not take a stand for their own investment, why should executives, the board, or anyone else? Investors need to educate themselves on how this corporate system works and what their role should be. Being more knowledgeable about the system, its failures, and the solutions would also help investors regain some of the trust that was broken. This book aims to provide that education.
Finally, we believe that anyone who is interested in participating in the corporate system in the future (for example, business students) should read this book. To make sure that breakdowns like the ones that occurred recently are never to be experienced again, the future participants in the system need to learn from the past.
Most helpful customer reviews
2 of 2 people found the following review helpful.
Easy to understand text explaining corporate culture.
By William R Ferland
I would recommend this book to anyone interested in understanding the culture and ethics that have lead to the numerous scandals the economy has been faced with as of late. If you are an investor or the board member of company, this text is worth reading. The investor benefits from a door being opened into companies that practice unethical financial practices and provides an investment warning. A board member, or anyone hiring an executive that has more interest in the long term viability of their company than the short term gains and rapid fallout associated with using accounting tricks to mislead the public will gain insight into the type of individual and practices that should be avoided at all cost. What these companies have done goes far beyond their employees and shareholders. It has shaken the whole economy.
0 of 0 people found the following review helpful.
The Best Book of This Kind
By Steve Kim
I think that every MBA student and practitioner should read this book not to repeat another accounting scandal and not to mess up our economy again.
0 of 1 people found the following review helpful.
The Best Book of This Kind
By Steve Kim
I think that every MBA student and practitioner should read this book not to repeat another accounting scandal and not to mess up our economy again.
Infectious Greed: Restoring Confidence in America's Companies, by John R. Nofsinger, Kenneth A. Kim PDF
Infectious Greed: Restoring Confidence in America's Companies, by John R. Nofsinger, Kenneth A. Kim EPub
Infectious Greed: Restoring Confidence in America's Companies, by John R. Nofsinger, Kenneth A. Kim Doc
Infectious Greed: Restoring Confidence in America's Companies, by John R. Nofsinger, Kenneth A. Kim iBooks
Infectious Greed: Restoring Confidence in America's Companies, by John R. Nofsinger, Kenneth A. Kim rtf
Infectious Greed: Restoring Confidence in America's Companies, by John R. Nofsinger, Kenneth A. Kim Mobipocket
Infectious Greed: Restoring Confidence in America's Companies, by John R. Nofsinger, Kenneth A. Kim Kindle
Tidak ada komentar:
Posting Komentar