On Values: The (Hidden) Ethical Framework in Capital Market Theory (An Outline of Ethics in Economics and Finance)

  • Henry Schäfer
Part of the SpringerBriefs in Finance book series (BRIEFSFINANCE)


Beyond a very dominant reluctance among many practitioners and academics in finance and capital markets to accept the relevance of ethics and morality, a closer look behind the curtain of the technically minded understanding of financial modelling reveals interesting links between finance and ethics. Starting with a more religious observation concerning finance and its rivalry with economics, an introduction to basic elements of ethics is being presented here. It can be clearly demonstrated that virtue, deontological, and teleological ethics can contribute to financial matters but have fallen into oblivion over the last century. Of greatest concern is the role of utilitarianism as part of teleological ethics as it implicitly underlies the neoclassical-based finance and capital market theory. Also the unveiling of the hidden ethical roots of finance and capital markets, exemplary contributions demonstrate how the gap between ethics and finance could be bridged.


Virtue ethics Deontological ethics Teleological ethics Religion Separation principle Financial market efficiency Rational expectations Interest rate 


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Copyright information

© The Author(s), under exclusive licence to Springer Nature Switzerland AG 2019

Authors and Affiliations

  • Henry Schäfer
    • 1
  1. 1.Institute of Business AdministrationUniversity of StuttgartStuttgartGermany

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