This course gives the students a solid grounding in behavioural finance. Emphasis is placed upon how psychology and cognitive bias affect the financial decision-making of investors, managers, and firms and how this results in corporate decisions and financial market anomalies. We then discuss how to apply what we learn in class to the real world. The ultimate goal is to deepen and broaden students’ knowledge of investor, managerial, and market behavior and allow students to evaluate financial decisions and outcomes wisely and effectively.
A. Develop a systematic knowledge of current issues in academic and professional practice related to behavioral finance. B. Develop analytical skills (soft skills, transferable skills) for the application of behavioral finance. C. Establish a conceptual framework to comprehend how behavioral finance affects corporations and financial markets. D. Demonstrate a critical awareness to evaluate methodologies and cultivate critiques E. Consider and address practical issues from a novel behavioral finance perspective.
This module will be taught using a combination of lectures and tutorials. Learning will be reinforced by appropriate readings from the textbook and topical articles in the financial press. The coursework requires applying analytical skills and knowledge of behavioral finance to financial markets, which will enhance students' understanding of critical financial issues.