Perspectives: Local Ethics in a Global World

Posted: 11 Jun 2007

See all articles by Meir Statman

Meir Statman

Santa Clara University - Department of Finance


Ethics, fairness, trust, and freedom from corruption are parts of social capital, and social capital matters in financial markets. Investors consider not only the information they receive but also their trust in the accuracy of the information and the fairness of the markets in which to trade. Deficiencies in ethics and fairness mark all countries. But surveys of the perception among students and finance professionals of the fairness of insider trading in eight countries indicate that deficiencies are more pronounced in some countries than in others. Five factors are discussed that affect social capital: culture, globalization, income, education, and law enforcement.

Keywords: Ethics and Professional Standards, Global Differences, Advocacy, Regulatory, and Legislative Issues, Advocacy Issues, Investment Industry, Other

Suggested Citation

Statman, Meir, Perspectives: Local Ethics in a Global World. Financial Analysts Journal, Vol. 63, No. 3, pp. 32-41, 2007. Available at SSRN:

Meir Statman (Contact Author)

Santa Clara University - Department of Finance ( email )

500 El Camino Real
Santa Clara, CA 95053
United States
408-554-4147 (Phone)
408-554-4029 (Fax)

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