The goal of this course is to provide an introduction to Behavioral Finance. We start with an over-view of classical paradigms of decision making of individual investors and other participants in financial markets. We then link individual behavior to market anomalies, describe and explain market inefficiencies as well as potential trading strategies, and discuss psychological biases and other limitations of investors that might generate those anomalies. In a last part, the course deals with behavioral aspects in corporate finance.

The aim of the course is to provide students with knowledge of the main concepts, methods, and empirical findings of Behavioral Finance. Thereby, the course covers theoretical, empirical, and experimental research as well as recent applications in practice.

The tutorials accompany the lectures in Behavioral Finance.

Please take a look at the syllabus for further information.

The course is designed for bachelor students in their advanced studies. Basic knowledge of finance, economics and statistics is a prerequisite.

This course deals with the theory and practice of how corporations make key corporate financial decisions. Starting with the efficiency of capital markets and irrelevance theorems for corporate capital structure, students will learn about several market frictions such as corporate taxes, costly bankruptcy, and asymmetric information and their implications for capital structure choices. Further topics covered are agency problems within corporations, adverse selection in capital markets, capital budgeting and valuation methods used for investment decisions, as well as initial public offerings. The course will conclude with some aspects of raising equity capital and mergers and acquisitions.

The main objective of the lecture is to introduce students to theoretical and empirical research in the field of corporate finance.