Modulhandbuch (Module manual)

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

​This course dives into the fascinating world of corporate finance through the lens of human behaviour. Rather than assuming that managers always act as perfectly rational decision-makers, we explore how real-world cognitive biases and psychological quirks shape—and sometimes distort—major financial choices. You'll discover why these behavioural tendencies can have an outsized impact when managers are allocating millions of euros, and how overlooking them can spell disaster for a firm's bottom line. By pinpointing common pitfalls—overconfidence, loss aversion, herd mentality, and more—you'll learn to spot and correct these biases before they derail shareholder value.

We start in the first weeks of the term by looking at a) Introduction into Behavioral Biases, b) Retail Investors and Biases, and c) Agency Conflicts and Compensation. In the second third of the term, we will cover c) Agency Conflicts and Compensation, d) Project Selection and Capital Budgeting, e) Valuation, and f) Risk Perception. In the third part of the course, we talk about g) Capital Structure, h) Dividends and Share Repurchases, i) Mergers and Acquisitions, and j) Financial Accounting.​

Throughout the term, you'll attend an kick-off event in week one. From week two onwards, our hands-on exercises will put theory into action: you'll tackle real business cases, apply behavioural tools to diagnose problems, and propose bias-busting solutions. And the active participation in the exercises pays off: You can earn Bonus points for the exam for presenting your solution of the hands-on cases. The module wraps up with a written exam at the end of the lecture period, testing your conceptual understanding. Prepare to rethink the “rational manager" myth and gain powerful insights into making smarter, more effective corporate finance decisions.​

The module concludes with a written examination in the designated phase after the lecture period.​

​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.