The Course Content
Day One: Introduction to Behavioral Finance
Conceptual definition of finance : Hard versus Soft Finance
Understand the financial system operators: Arbitrageurs, Speculators and Hedgers
What is behavioral finance?
Traditional portfolio theory – A brief recap
The risk profiles of investors: Risk neutral, Risk Takers and Risk Adverse
Market sentiment & Stock market crashes
Day Two: Behavioural Finance: Application of Psychology in Financial Decisions
Heuristics or Rules of Thumb
Neuroeconomics and Neurofinance
Emotional Finance: The Role of the Unconscious in Financial Decisions
Experimental Finance
The Psychology of Risk
Psychological Influences on Financial Regulation and Policy
Day Three: Asset Pricing and Behavioural Biases
Market Inefficiency
Belief- and Preference-Based Models
Disposition Effect
Overconfidence
Familiarity Bias
Limited Attention & other behavioral biases
Day Four: Behavioural Corporate Finance
Financing Decisions
Capital Budgeting and Other Investment Decisions
Dividend Policy Decisions
Loyalty, Agency Conflicts, and Corporate Governance
Initial Public Offerings
Mergers and Acquisitions
Day Five: Investor Behaviour
Trust Behavior: The Essential Foundation of Financial Markets
Individual Investor Trading
Cognitive Abilities and Financial Decisions
Pension Participant Behavior
Institutional Investors
Derivative Markets