Behavioral Finance

Catalog description

This course explores irrational behaviors as they present themselves in a corporate and investor context. It addresses psychological phenomena that may minimize financial value creation and examines ways to mitigate these behaviors. Coverage includes behaviors in corporate financial decisions (biases, heuristics, framing), valuation (by investors and analysts), capital budgeting techniques, risk and return perceptions, principal agent conflicts, group processes, and mergers and acquisitions.