The aim of the course is to provide students with knowledge in the field of behavioral finance. Students will thus complement their existing knowledge with behavioral insights necessary for understanding investor decisions and behavior in financial markets, as well as for making financial decisions at the individual, corporate, or national level.
1. Concepts and distinction between behavioral economics and behavioral finance.
2. Behavioral and traditional views of finance.
3. The impact of emotional bias on financial decision-making and mental accounting.
4. Personality types and risk perception in the context of behavioral finance.
5. The influence of behavioral factors on the relationship between investment advisor and investor.
6. The influence of behavioral factors on asset allocation in the context of portfolio management.
7. Behavioral finance and analyst projections.
8. The impact of behavioral biases on corporate financial policies (financing, investment, profit sharing policy, profit management, manager compensation, share distribution, etc.)
9. The social context of the financial system and the impact of the behavior of its participants on society.
After completing the course, the student will be able to:
1. compare the differences between behavioral and traditional approaches to financial decision-making,
2. critically assess the actions of individual investors in financial markets,
3. review the rationality of the company's financial policies,
4. argue an opinion about the social impact of new products in financial markets.
