Daphne Sobolev and James Clunie
Predatory trading is a stock market trading technique in which certain market participants exploit information about other market participants' need to trade. Predatory trading…
Abstract
Purpose
Predatory trading is a stock market trading technique in which certain market participants exploit information about other market participants' need to trade. Predatory trading often harms others. Hence, this paper examines the determinants and effects of financial practitioners' and lay people's judgments of predatory trading. Specifically, it investigates how the public availability and reliability of the exploited information affect their ethics and legality judgments and how the latter influence their behavioral intentions and regulation support.
Design/methodology/approach
The authors conducted two scenario judgment studies. In the first study, participants were financial practitioners, and in the second – lay people.
Findings
Practitioners often judge predatory trading to be ethical. Practitioners and lay people incorporate in their ethics and legality judgments the public availability of the exploited information but tend to discount the legal reliability criterion. Lay people justify their ethics judgments using harm, legal or profit maximization principles. Practitioners' intentions to engage in predatory trading and lay people's intentions to let predatory fund managers invest their money depend on their judgments, which influence their regulation support.
Originality/value
This paper is the first to explore people's judgments of predatory trading. It highlights that despite the harm that predatory trading involves, practitioners often judge it to be ethical. Although law tends to lag behind financial innovation, people base their judgments and hence also behavioral intentions on their interpretation of the regulation. Hence, it reveals a dark aspect of the relationship between ethics and legality judgments.
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Keywords
Daphne Sobolev and James Clunie
Research has suggested that ethics judgments should be made from an impartial perspective. However, people are often partial about their money. This study aims to investigate the…
Abstract
Purpose
Research has suggested that ethics judgments should be made from an impartial perspective. However, people are often partial about their money. This study aims to investigate the extent to which perspectives – the perspective of those who can gain from the use of a financial practice and the perspective of those who can incur losses due to it – affect lay people’s ethics and legality judgments of the practice. In addition, it asks which factors influence their investment intentions.
Design/methodology/approach
The study uses a between-participant scenario experiment, in which participants are presented with cases of predatory trading and front running. Each participant is asked to take either a gain or loss perspective through the formulation of the presented cases. Subsequently, all participants make ethics, legality and investment intention judgments.
Findings
The authors establish that perspectives significantly affect people’s ethics judgments and, to a lesser extent, their legality judgments. People’s investment intentions depend on their perspectives, too, as well as on their financial considerations, ethics judgments, legality judgments and trust.
Originality/value
Research has focused on relatively stable determinants of people’s ethics judgments of financial practices. This paper shows that the situational prospect of profit can sway lay people’s judgments. When people take the gain perspective, they judge financial practices to be more ethical than when they take the loss perspective. Furthermore, people’s perspectives can distort their legality judgments and influence their investment intentions.
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In this paper, the author comments on the influence of political structures on public mental health. Using psychoanalytic theory and a Kleinian framework, the author suggests that…
Abstract
In this paper, the author comments on the influence of political structures on public mental health. Using psychoanalytic theory and a Kleinian framework, the author suggests that current political systems and culture can be inhibiting of mental development and health. The paper explores the concept of democracy as an ideal and the effects it has on public mental health. The paper raises the question of political restructuring as a means of promoting mental health and suggests that there is a role for further interdisciplinary work in this area.
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OUR good custom, as we deem it, to wish our readers a larger measure of happiness and success than heretofore we repeat for 1947. There are many signs in the libraries to give…
Abstract
OUR good custom, as we deem it, to wish our readers a larger measure of happiness and success than heretofore we repeat for 1947. There are many signs in the libraries to give encouragement to the hope that they, the libraries, are now so well established everywhere that the old evils of complete disregard, penury and restriction will not recur and that, gradually but surely, the aims and the purpose for which we stand will be realized. That they may be so for all readers of The Library World is, we believe, the best possible New Year wish.
AS J. L. Hobbs shows so clearly in his recent book, the interest in local history is growing enormously at present. The universities, training colleges and schools, as well as the…
Abstract
AS J. L. Hobbs shows so clearly in his recent book, the interest in local history is growing enormously at present. The universities, training colleges and schools, as well as the institutions of further education, are all making more use of local studies—geographical, economic, social and historical—in their regular courses, in their advanced work, and in their publications.
Vinegar, vin aigre or soured wine is a name that suggests the nature and origin of the substance which is the subject of this note. In France the name is applied to the substance…
Abstract
Vinegar, vin aigre or soured wine is a name that suggests the nature and origin of the substance which is the subject of this note. In France the name is applied to the substance that results from the acetous fermentation of wine. The name has at least the merit of accuracy. The term vinegar has, however, been extended in this country to denote the product obtained by the acetous fermentation of a malt liquor and in the United States of America to mean the substance resulting from the acetous fermentation of cider. In general it may be said that certain kinds of vegetable matter may be made to yield a vinegar by this process. The Census of Production under the common heading “ vinegar and acetic acid ” states that in 1924 the output of these substances, in this country, was 14,200,000 gallons of a value of a little over a million pounds sterling; in 1930 the corresponding figures were 14,600,000 gallons and £950,000; in 1935, 17,100,000 gallons and £790,000. It may be observed that vinegar and acetic acid are not by any means the same thing. Vinegar made by acetous fermentation contains about six per cent. or slightly under that amount of acetic acid as a main and essential constituent, but other substances are present that give it a characteristic bouquet. But whether vinegar be made from malt, wine, cider, or similar substances it is a palatable and wholesome condiment and preservative. It is the result of a biological as distinguished from a chemical process, and we suggest that the term vinegar be limited to the product resulting from the former and not from the latter if it be intended for use in the household as an element in the food supply. The Food Inspectors Handbook, VI Edition, 1913, p. 300, tells us that commercial vinegar is a more or less impure acetic acid. The different varieties according to their source being malt, wine, cider, beet, sugar, and wood vinegars. We cannot think that “ impure acetic acid ” is a particularly happy definition of the term vinegar. It is surely the “ impurities ” the result of secondary reactions that give the characteristic flavour and palatability to vinegar that serve to distinguish it from a merely dilute solution of acetic acid. In the same way whisky might be defined as impure alcohol, but no one, as far as we know; has ever seriously suggested that a dilute solution of absolute alcohol would be a satisfactory substitute for whisky. similarly we suggest that wood vinegar—derived as it is from the distillation of various kinds of wood—is in its origin a purely chemical product and in no sense a biological product. It would follow that if the term vinegar be restricted, as we suggest it ought to be, to the product of biological action the term wood vinegar though well known and often used is really meaningless. The Food Industries' Manual, 1945, written for the guidance of food manufacturers, describes artificial vinegar—made by diluting acetic acid with water and colouring the solution with caramel—as a very poor substitute for the genuine product. “ Artificial vinegar ” it says “is raw in taste and completely lacking in the fine bouquet of characteristic brewed vinegar.” The Extra Pharmacopœia says that vinegar is “also made by diluting acetic acid and colouring with burnt sugar.” The reference however, presumably refers to the use of this kind of “ vinegar ” in pharmacy—vinegar and brown paper for instance—and not as an ingredient in foods.
MELINDA RILEY, BRIAN LANTZ, MIKE CORNFORD, TONY WARSHAW, JANE LITTLE, EDWIN FLEMING, ALLAN BUNCH and WILFRED ASHWORTH
The idea for this hugely successful event at the Crucible Theatre on 7 June, came first from the pages of New Library World, believe it or not. Reading one of Jane Little's…
Abstract
The idea for this hugely successful event at the Crucible Theatre on 7 June, came first from the pages of New Library World, believe it or not. Reading one of Jane Little's articles advertising Feminist Book Fortnight, I noticed that there was not going to be a feminist book fair in this country this year, and that the main fair was to be in Oslo. It seemed an ideal opportunity to alter Sheffield's image as the macho snooker playing capital of the North and the idea for the First Sheffield Women's Book Fair was born.
The January (1953) issue of this Journal carried an editorial article on this subject. And the prevalence of bad practices in the retail fish trade was emphasised at the…
Abstract
The January (1953) issue of this Journal carried an editorial article on this subject. And the prevalence of bad practices in the retail fish trade was emphasised at the Conference at Scarborough, in June, of the Institute of Weights and Measures Administration. Now it appears that the White Fish Authority is actively engaged in preparing regulations under the Sea Fish Industry Act, 1951, to deal with the evil. What follows is taken from the second annual report of the Authority, for the year ended March 31st, 1953.