This course builds on the material covered in International Corporate Finance. In particular, the course focuses on the investment issues. Therefore a thorough understanding of concepts such as Modern Portfolio Theory, Capital Asset Pricing Model, Market Efficiency, etc. is assumed.

10 x 2 hour lectures & 4 x 1 hour tutorials. Asynchronous learning is incorporated in the course, as students have access to pre-recorded short videos that explain and discuss the material of each unit. Students are also provided with PowerPoint slides that cover and summarize the main issues of each unit. In addition, each unit encompasses a range of self-directed activities, including multiple-choice questions, which students can undertake independently at their convenience to enhance their comprehension of the material.

None

None

The aims of this module are:

■ to offer students a stimulating insight into the emerging field of behavioural finance and to enhance students' ability to critically interpret the behaviours associated with financial decision-making.

■ to deepen and broaden students' conceptual understanding of financial decision-making.

■ to encourage students to critically evaluate certain established financial models and understandings in light of emerging behavioural finance research and to analyse the ways in which existing models and understandings in finance might need to change to accommodate the behavioural finance research.

■ to develop students' ability to recognize the linkages between theoretical knowledge drawn from research and real practical financial decision making, and building confidence that will facilitate the putting of theoretical behavioural finance knowledge into action in financial decision-making.

1. Critically assess the significance of the most commonly observed forms of decision-making bias, e.g., optimism, herding;

2. Explain and evaluate the role of heuristics, or "rules of thumb", commonly used in financial decision-making;

3. Analyse the impact of bias in simple financial decisions;

4. Analyse practical situations where financial decision-making has been influenced for better or worse in companies through bias and heuristics;

5. Critically evaluate the psychological foundations and the impact of bias and heuristics on financial decision-making;

6. Apply decision-making skills, including numerical reasoning and consideration of bias, heuristics and learning in the for example context of case-studies;

Students must submit at least 75% by weight of the components (including examinations) of the course's summative assessment.