Robert Solomon has usefully set forth the outlines of an ontology of ethics for the employee. I seize upon three of the insights in his paper—specifically, relating to employee role, social nature, and virtue— and develop them along Aristotelean lines, showing along the way how classic “dilemmas” of the business ethics literature can be recast as problems of employee character and virtue.

This paper identifies six basic languages of morals and shows that while in general it is impossible to say that one moral language is better, some languages are better for the purpose of characterizing international corporate responsibility. In particular, moral languages that imly minimum rather than perfectionist standards of behavior, and which are not overly dependent on analogy with human moral psychology, are better than ones ranging broadly over both minimum and maximum standards and requiring analogy to human beings. Languages based in rights and duties, avoidance of harm, and social contracts, are better for understanding international corporate ethics than ones based in virtues, self control, or the maximization of human happiness.

In The Theory of Moral Sentiments, the book preceding The Wealth of Nations, Adam Smith argued for a kind of virtue that Milton Friedman and many another economist reject as appropriate market behavior:

This paper provides a closed form solution for the value of a multiple claim insurance contract that is subject to a deductible amount and/or an upper limit on claims. The solution is a time integral of European option prices. The model provides three important insights. First, systematic risk in insurance policies is altered in the presence of deductibles and maximum indemnity levels. Second, idiosyncratic risk affects policy valuation and the required rates of return on underwriting portfolios. Finally, contrary to traditional actuarial intuition, changes in the risk-free interest rate may either increase or reduce policy values.

This paper tests the null hypothesis of no difference in the probability of a trade occurring at the ask using a new database containing intraday bid-ask quotes and transaction prices on both U.S. and Canadian Exchanges. We use LOGIT analysis to test the hypothesis across days of the week, price-stratified portfolios, and times of the day. We find systematic patterns in the probability of a trade at the ask resembling previously documented returns anomalies and conclude that the findings of previous weekend and intraday returns studies may be overstated. The significance of this conclusion substantially increases as one moves from the use of interday to intraday data.

Many empirical studies find that the distribution of stock returns departs from normality. In such cases, it is desirable to employ a statistical estimation procedure that may be more efficient than ordinary least squares. This paper describes various robust methods, which have attracted increasing attention in the statistical literature, in the context of estimating beta risk. The empirical analysis documents the potential efficiency gains from using robust methods as an alternative to ordinary least squares, based on both simulated and actual returns data.

Current literature stresses that efficient funds do not exist when asset returns are continuously distributed. This paper shows that the existence of efficient funds can be restored if security returns are generated by a linear factor model.