Behavioural Finance (P02281)

? Credit Points : 10 ? SCQF Level : 11 ? Acronym : MSE-P-BF

The course unit provides an overview of a new area in finance that takes as its premise that investment decision making and investor behaviour are driven by aspects of personal and market psychology. It familiarises students to the most widely cited empirical research with evidence from the US and the UK.
The unit will cover the following topics
Introduction to Behavioural Finance
Limited Arbitrage/ Noise Trader Risk
Stock market anomalies/Herding
Behaviour of individual investors, analysts, and institutional investors (Contrarian and momentum investing)
Informational efficiency and earnings announcement (Post earnings announcement drift)
Corporate events and long horizon returns (Takeovers, Initial Public Offerings)
Institutional Investors and Corporate Governance
Behavioural Finance versus Market Efficiency

Entry Requirements

none

Subject Areas

Home subject area

Business Studies, (Management School and Economics, Schedule H)

Delivery Information

? Normal year taken : Postgraduate

? Delivery Period : Semester 2 (Blocks 3-4)

? Contact Teaching Time : 2 hour(s) per week for 11 weeks

All of the following classes

Type	Day	Start	End	Area
Lecture	Tuesday	10:00	12:00	Central

Summary of Intended Learning Outcomes

On completion of this unit successful students will have achieved the following learning outcomes:

a systematic and advanced knowledge and understanding of the main principles of Behavioral Finance and Market Efficiency
a familiarity with the latest research developments and issues in Behavioral Finance and Market Efficiency
an advanced knowledge and understanding of the implications of research on Behavioral Finance and Market Efficiency for security pricing and financial analysis
an understanding of the limits of Behavioral Finance
a critical evaluation of an academic paper

Assessment Information

Assessment will be via a two-hour examination at the end of semester two (70% of the final mark) and an assignment(3000 words) during the semester (30% of the final mark). The assignment component, which counts for 30% of the final mark for the unit will be assessed based on the individual presentation that will count for half and half on the written report.