Behavioural Finance - FINS3655

Introduces students to the concept of behavioural finance and its impact on financial markets and decision making. Investigates behavioural traits such as overconfidence, representativeness, anchoring and loss aversion and demonstrates how these psychological phenomena impact on an individual's behaviour. Other topics covered include the impact of behavioural factors on stock market anomalies, capital structure, dividend policy and mergers and acquisitions. At the end of this course, students will understand the nature and impact of these psychological factors on many important business decisions.