020314400 BEHAVIORAL FINANCE ( 3 Crd.Hrs )

Pre-Requisites : 020313110

This course is intended to complement other finance courses that are mainly based on the traditional paradigm which assumes that investors and managers are generally rational. Specifically, this course has three main objectives. First, we aim to examine how the insights of behavioral finance theories shed light on the behavior of individual investors and finance professionals in investment decision-making and corporate financial decision-making. Second, we explore the possibility to improve investment performance and corporate performance by recognizing the cognitive biases and applying appropriate 'debiasing' techniques. Finally, we investigate the implications of behavioral finance for the construction of good corporate governance mechanisms.