| Acknowledgements |
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vii | |
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List of Tables and Figures |
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xiv | |
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List of Abbreviations and Acronyms |
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xv | |
| Foreword |
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xix | |
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1 | (12) |
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The Need to Restore Trust and Integrity |
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3 | (2) |
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Root Causes of the Current Crisis |
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5 | (2) |
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Remedies to the Current Crisis |
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7 | (1) |
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Corruption and Greed on Wall Street |
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8 | (1) |
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9 | (4) |
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A Short History of Business Scandals |
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13 | (34) |
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The Mississippi Company Bubble of France |
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15 | (2) |
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The South Sea Company Bubble of England |
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17 | (3) |
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20 | (1) |
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21 | (2) |
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Railway Stocks, Jay Cooke, and the U.S. Stock Market Crash of 1873 |
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23 | (3) |
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The Ponzi Pyramid Scheme of Finance |
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26 | (1) |
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Swindles of the Boom Era of the 1920s |
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27 | (6) |
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28 | (1) |
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The Middle West Utilities Holding Company |
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29 | (1) |
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Albert Wiggins Sells Short |
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30 | (1) |
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Charles Mitchell's Financial Supermarket |
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31 | (2) |
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Government Regulation: The United States' Response to the Stock Market Crash and Corporate Misdeeds |
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33 | (4) |
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33 | (3) |
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Securities and Exchange Act of 1934 |
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36 | (1) |
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More Scandals---McKesson & Robbins Company |
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37 | (1) |
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38 | (2) |
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40 | (7) |
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Corporate Malfeasance: Fraud, Theft, and Regulatory Laxity |
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47 | (36) |
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Major American Corporations Lose Their Way |
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49 | (22) |
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49 | (8) |
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57 | (4) |
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61 | (3) |
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64 | (2) |
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66 | (1) |
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67 | (1) |
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68 | (3) |
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Scandals Appear in Europe |
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71 | (5) |
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Missing Oil Reserves At Shell |
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71 | (1) |
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72 | (1) |
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73 | (2) |
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75 | (1) |
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76 | (2) |
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78 | (5) |
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Addressing Corporate Scandals: The Sarbanes-Oxley Act as a Panacea? |
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83 | (20) |
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The Public Company Accounting Oversight Board (PCAOB) |
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84 | (1) |
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Corporate Self-Regulation |
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84 | (3) |
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CEO/CFO Reporting Certification |
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84 | (1) |
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Disgorgement of CEO and CFO Compensation and Profits |
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85 | (1) |
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Ban on Personal Loans to Executive Officers and Directors |
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86 | (1) |
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Accelerated Reporting of Trades by Insiders |
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86 | (1) |
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Prohibition on Insider Trades During Pension Fund Blackout Periods |
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86 | (1) |
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New Audit Committee Standards |
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87 | (1) |
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HealthSouth: An Early Test of the Sarbanes-Oxley Act |
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88 | (3) |
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Sarbanes-Oxley Paying Dividends |
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91 | (1) |
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Demise of Arthur Andersen |
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92 | (3) |
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The Plight of Other Accounting Firms |
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95 | (1) |
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Freddie Mac Suppresses Profits |
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96 | (2) |
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Broad Effects of Corporate Malfeasance |
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98 | (1) |
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Assessment and Final Thoughts |
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99 | (4) |
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Scandal Spreads to Wall Street |
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103 | (30) |
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Pressures Mount in Washington: SEC Chairman, Harvey Pitt, at Center of Controversy |
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104 | (1) |
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Bush's Reaction: Status Quo? |
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105 | (1) |
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The Martin Act Addresses Wall Street Wrongdoing |
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106 | (8) |
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Eliot Spitzer---The Public's Hero |
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108 | (1) |
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Reforms Start: The Global Settlement for Investment Banks |
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109 | (2) |
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Penaties, Disgorgement, Funds for Independent Research, and Investor Education |
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111 | (1) |
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Summary of the Enforcement Actions |
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112 | (2) |
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Summary of Global Settlement |
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114 | (1) |
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Celebrity Investment Analysts Investigated |
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114 | (6) |
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Henry Blodger's Resignation |
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114 | (1) |
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Mary Meeker Never Indicted |
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115 | (2) |
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Jack Grubman: Permanently Barred from the Securities Industry |
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117 | (1) |
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Frank Quattrone: The Master of Technology IPOs |
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118 | (2) |
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The New York Stock Exchange (NYSE): Another Self-Regulation Failure |
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120 | (9) |
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Richard Grasso: From Hero to Goat |
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120 | (6) |
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Carl McCall Avocates Separating Trading and Regulation |
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126 | (1) |
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127 | (2) |
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Violations of ``Trade-Through Rules'' |
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129 | (2) |
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Final Thoughts and Conclusion |
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131 | (2) |
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Mutual Funds Scandals: More than a Few Bad Apples |
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133 | (30) |
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Mutual Fund ``Late Trading'' and ``Market Timing'' Scandals |
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134 | (16) |
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136 | (1) |
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Bank of America---Nations Funds Family |
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137 | (2) |
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139 | (1) |
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140 | (3) |
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143 | (2) |
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Massachusetts Financial Services Company |
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145 | (1) |
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Alliance Capital Management |
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146 | (1) |
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146 | (4) |
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Mutual Fund Fees Questioned |
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150 | (2) |
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Illegal Sales Practices---Directed Brokerage Businesses |
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152 | (3) |
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Fund Trustees As Chihuahuas |
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155 | (1) |
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Fidelity's Johnson Argues Against Proposed Board Reform |
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155 | (1) |
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Commission Bundling and Soft Dollar Payments |
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156 | (1) |
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Malfeasance at Insurance Companies |
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157 | (1) |
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Cash Withdrawal and the Effect on Funds Size |
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157 | (1) |
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158 | (3) |
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161 | (2) |
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Executive Perversion of Financial Management |
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163 | (18) |
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164 | (2) |
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The Agency Problem in Full Bloom |
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166 | (1) |
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Leveraged Buyouts and Junk Bonds |
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167 | (1) |
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Options: The Major By-Product of the LBO Movement |
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167 | (1) |
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The Economic Boom of the 1990s |
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168 | (1) |
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Dividend Conventions Violated |
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169 | (1) |
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The Fundamentals of Share Repurchase Strategies |
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170 | (1) |
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Buybacks Substituted For Dividends |
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171 | (1) |
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The Inappropriate Use of Share Buybacks |
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172 | (1) |
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Anything But Chump Change |
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173 | (2) |
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What Happened at the End of the Day? |
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175 | (1) |
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176 | (2) |
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What About Agency Theory? |
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178 | (1) |
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Concluding Thoughts and Analysis |
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179 | (2) |
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Market System and Social Institutions Called into Question |
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181 | (26) |
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Institutions Establish the Rules of the Game |
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182 | (2) |
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The Role of Organizations |
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184 | (1) |
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The Market Economy as an Institution |
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185 | (1) |
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Public Education is Necessary to Avoid ``Atrophied Personalities'' |
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186 | (2) |
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Transaction Costs and Property Rights Create Institutions |
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188 | (2) |
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Non-Market Institutions that Counter the Negative Effects of the Market |
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190 | (4) |
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The Family as an Institution |
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190 | (1) |
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The State as an Indispensable Institution |
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191 | (1) |
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The Nation and Cultural Institutions |
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192 | (1) |
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Professional Associations Let Us Down |
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193 | (1) |
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Choices Devoid of Meaning |
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194 | (1) |
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Spill-Over Effects of the Market |
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195 | (2) |
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Organization Theory: Incentives Versus Leadership |
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197 | (1) |
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198 | (3) |
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Paying for Performance as a Joke |
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198 | (2) |
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CEO Compensation Excesses: How Much is Enough? |
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200 | (1) |
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Transparency as a Panacea |
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201 | (2) |
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Final Thoughts and Analysis |
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203 | (4) |
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Virtue: Medicine for Business Ethics |
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207 | (28) |
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Reflections on the Virtuous Life: Early Philosophies |
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209 | (1) |
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The Study of Virtue in History |
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210 | (14) |
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Adam Smith Relates Morality to the Invisible Hand |
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214 | (5) |
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219 | (5) |
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Developing Character Through Virtuous Behavior |
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224 | (2) |
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226 | (3) |
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Education and Business Ethics |
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229 | (2) |
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Final Thoughts and Analysis |
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231 | (4) |
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Reflections on Corporate Scandals |
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235 | (14) |
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236 | (9) |
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245 | (4) |
| Appendix 1: Caux Round Table |
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249 | (8) |
| Appendix 2: Listing of Virtues |
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257 | (6) |
| Notes |
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263 | (16) |
| Bibliography |
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279 | (10) |
| Index |
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289 | |
Other versions by this Author