Quantitative behavioral finance

Aims of the course

no description

Course syllabus

1. Investor behavior and anomalies in financial markets
1.1. Limits to arbitrage
1.2. Prospect theory, behavioral biases, anchoring and mental accounting
1.3. Equity-premium puzzle, predictability of stock returns, size premium, momentum effect, closed-end funds puzzle, insufficient diversification of the investments, excessive trading, etc.
2. Behavioral Corporate Finance
2.1. Irrational investors and rational managers
2.2. Rational investors and irrational managers
2.3. Implications for corporate financing, investments and other firm policies (payout, firm name, earnings management, executive compensation, stock splits, etc.)
3. Behavioral finance and financial professionals
4. Debiasing and Behavioral investing

Course director(s)