标题：The financial services industry and society The role of incentives/punishments, moral hazard, and conflicts of interests in the 2008 financial crisis
期刊名称：Journal of Economics, Finance and Administrative Science
印刷版ISSN：2077-1886
电子版ISSN：2218-0648
出版年度：2017
卷号：22
期号：43
页码：168-190
语种：English
出版社：Universidad ESAN
其他摘要：Purpose – This paper aims to present an analysis of the role of fi nancial incentives, moral hazard and con fl icts of interests leading up to the 2008 fi nancial crisis. Design/methodology/approach – The study ’ sanalysishasidenti fi ed common structural fl aws throughout the securitization food chain. These structural fl aws include inappropri ate incentives, the absence of punishment, moral hazard and con fl icts of interest. This research sees the full impact of these structural fl aws when considering their co-occurrence throughout the fi nancial system. The authors address systemic defects in the securitization food chain and examine the inte r-relationships among homeowners, mortgage originators, investment ba nks and investors. The authors also address the role of exogenous factors, including the SEC, AIG, the cr edit rating agencies, Congress, business academia and the business media. Findings – The study argues that the lack of criminal prosecutions of key fi nancial executives has been a key factor in creating moral hazard. Eight years after the Great Recession ended in the USA, the fi nancial services industry continues to suffer from a crisis of trust with society. Practical implications – An overwhelming majority of Americans, 89 per cent, believe that the federal government does a poor job of regulating the fi nancial services industry ( Puzzanghera, 2014 ). A study argues that the current corporate lobbying framework undermines societal expectations of political equality and consent ( Alzola, 2013 ). The authors believe the Singapore model may be a useful starting point to restructure regulatory agencies so that they are more responsive to societal concerns and less responsive to special interests. Finally, the widespread perception is that the fi nancial services sector, in particular, is ethically challenged ( Ferguson, 2012 ); perhaps there would be some bene fi t from the implementation of ethical climate monitoring in fi rms that have been subject to deferred prosecution agreements for serious ethical violations ( Arnaud, 2010 ). Originality/value – The authors believe the paper makes a truly original contribution. They provide new insights via their analysis of the role of fi nancial incentives, moral hazard and con fl icts of interests leading up to the 2008 fi nancial crisis. Paper type Research pape
其他关键词：Society; Financial crisis; Financial incentives; Financial services industry; Conflicts of interest; Moral hazard.
