Modulhandbuch (Module manual)

M.184.4205 Behavioral Corporate Finance
(Behavioral Corporate Finance)
Koordinator (coordinator): Prof. Dr. Jan Riepe
Ansprechpartner (contact):
Credits: 5 ECTS
Workload: 150 Std (h)
Semesterturnus (semester cycle): WS
Studiensemester (study semester): 1-4
Dauer in Semestern (duration in semesters): 1
Lehrveranstaltungen (courses):
Nummer / Name
(number / title)
Art
(type)
Kontaktzeit
(contact time)
Selbststudium
(self-study)
Status (P/WP)
(status)
Gruppengröße
(group size)
a) K.184.42051 / Behavioral Corporate Finance P 25 TN (PART)
b) K.184.42052 / Behavioral Corporate Finance P 25 TN (PART)
Wahlmöglichkeiten innerhalb des Moduls (Options within the module):
Keine
Empfohlene Voraussetzungen (prerequisites):

​Foundational knowledge in Corporate Finance and Behavioral Decision Making.​

Inhalte (short description):

This course analyses corporate finance issues from a behavioural perspective. It deals with a strand of research that focuses on how managers and firms make financial decisions and how these decisions may differ from those predicted by traditional finance theory. Unlike traditional finance, which assumes that managers are rational and always make optimal decisions, behavioural finance argues that individuals are actually prone to psychological and cognitive errors. Since corporate managers typically make decisions involving millions of Euros, their behaviour has a direct impact on the company's results; therefore, behavioural finance is likely to be even more important for corporate finance than for investments and financial markets. For example, behavioural phenomena can lead managers to take actions that are detrimental to shareholders' interests; simply by identifying behavioural biases at the right time, managers could save their companies from potential financial disaster. By applying psychological and behavioural insights to corporate finance and financial markets, students can learn how managers can avoid these biases to make more rational decisions.

The course takes place regularly during the lecture period. A kick-off event in the first week of lectures provides initial insights into the topic. In the accompanying exercise, the methods learnt are applied to specific business cases. The accompanying exercise starts in the second week of lectures. The module concludes with a written examination in the designated phase after the lecture period.​


Lernergebnisse (learning outcomes):
Fachkompetenz Wissen (professional expertise):
Studierende...
  • le arn the effects of the different behavioral biases and its effects on corporate decision making.
  • l earn how to structure and design corporate decision making to better cope with biases.​
  • Fachkompetenz Fertigkeit (practical professional and academic skills):
    Studierende...
  • ​understand the economic decisions and how they affect market prices and returns.
  • Kown nodging techniques that trigger behavioralistic behaviors in executive decision making. ​

  • Personale Kompetenz / Sozial (individual competences / social skills):
    Studierende...
  • ​gain ability of self-learning
  • gain more expertise in scientific working.
  • Improve ability for writing a detailed project report.​​

  • Personale Kompetenz / Selbstständigkeit (individual competences / ability to perform autonomously):
    Studierende...
  • ​​know how to answer related questions regarding behavioral corporate finance.

  • Prüfungsleistungen (examinations)
    Art der Modulprüfung (type of modul examination): Modulabschlussprüfung
    Art der Prüfung
    (type of examination)
    Umfang
    (extent)
    Gewichtung
    (weighting)
    a) Klausur 60 Minuten 100.00 %
    Studienleistung / qualifizierte Teilnahme (module participation requirements)
    Nein
    Voraussetzungen für die Teilnahme an Prüfungen (formal requirements for participating in examinations)
    Keine
    Voraussetzungen für die Vergabe von Credits (formal requirements for granting credit points)
    Die Vergabe der Credits erfolgt, wenn die Modulnote mindestens „ausreichend“ ist
    Gewichtung für Gesamtnote (calculation of overall grade)
    Das Modul wird mit der doppelten Anzahl seiner Credits gewichtet (Faktor: 2)
    Verwendung des Moduls in den Studiengängen (The module can be selected in the following degree programmes)
    M.Sc. Betriebswirtschaftslehre
    M.Sc. International Business Studies
    M.Sc. International Economics and Management
    M.Sc. Management
    M.Sc. Management Information Systems
    M.Sc. Taxation, Accounting and Finance
    M.Sc. Wirtschaftsinformatik
    M.Sc. Wirtschaftspädagogik
    M.Ed. Wirtschaftspädagogik
    Umfang QT (participation requirements):
    Lernmaterialien, Literaturangaben (learning material, literature):
    Teilnehmerbegrenzung (participant limit):
    25 Personen
    Sonstige Hinweise (additional information):

    ​The introductory lecture, in which further important information on the module will be given, will take place in the first week of lectures of the summer semester! The exact date will be published in PAUL.

    Literaturangaben
  • Banker, M., R. Ruback, J. Wurgler (2004) Behavioral Corporate Finance: A Survey. NBER Working Paper No. 10863.
  • Malmendier, U. (2018) Behavioral Corporate Finance, in Handbook of Behavioral Economics, Eds.: B. Bernheim, S. DellaVigna & D. Laibson.
  • Shefrin H. (2018) Behavioral Corporate Finance, McGrawHill.​
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