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Establishment
Language of instruction
English
Teaching content
FINANCE
This course occurs in the following program(s)
IESEG Degree - Programme Grande École
- Crédits ECTS: 2.00
Training officer(s)
T.SAMDANI
Stakeholder(s)
Taufique SAMDANI
Présentation
Prerequisite
Courses: Corporate Finance. Basic knowledge of Utility Theory and Probability
Theory.
Software: Knowledge of statistical analysis using Excel spreadsheet (or, Eviews,
Stata, R, …) will significantly reduce the estimated personal workload for this course.
Theory.
Software: Knowledge of statistical analysis using Excel spreadsheet (or, Eviews,
Stata, R, …) will significantly reduce the estimated personal workload for this course.
Goal
The traditional finance paradigm is based on models in which agents (investors and
managers) are rational and that perfect arbitrage leads to optimal valuation of assets.
However, this pardigm is found to be insufficient in explaining « anomalies », such as
the compnay’s payout policy, Initial Public Oferring underpricing, short-term Mergers
& Acquisition synergies and stock price bubbles. In this course, we extend the
traditional financial-models with behavioral models to explain some well-known
stylized facts in finance. At the end of the course, the students will have learnt how to
empirically validate behavioral models.
managers) are rational and that perfect arbitrage leads to optimal valuation of assets.
However, this pardigm is found to be insufficient in explaining « anomalies », such as
the compnay’s payout policy, Initial Public Oferring underpricing, short-term Mergers
& Acquisition synergies and stock price bubbles. In this course, we extend the
traditional financial-models with behavioral models to explain some well-known
stylized facts in finance. At the end of the course, the students will have learnt how to
empirically validate behavioral models.
Presentation
1. Psychology (Prospect Theory) and Limites to Arbitrage
2. Initial Public Offerings (underpricing),
3. Mergers & Acquisitions (short-term synergies),
4. Capital Structure (catering to demand for dividends).
2. Initial Public Offerings (underpricing),
3. Mergers & Acquisitions (short-term synergies),
4. Capital Structure (catering to demand for dividends).
Modalités
Organization
| Type | Amount of time | Comment | |
|---|---|---|---|
| Présentiel | |||
| Cours interactif | 16,00 | ||
| Travail personnel | |||
| Charge de travail personnel indicative | 25,00 | ||
| Overall student workload | 41,00 | ||
Evaluation
Final exam (25%). Group project + presentation + discussions (75%)
| Control type | Duration | Amount | Weighting |
|---|---|---|---|
| exposé | |||
| exposé | 0,00 | 1 | 40,00 |
| exposé | 0,00 | 1 | 60,00 |
| TOTAL | 100,00 | ||
Ressources
Bibliography
Required reading material and lecture notes are posted on the course website. - NA
Required reading material and lecture notes are posted on the course website.
Internet resources
IESEG Online
The required course material is on the course website. Please check course website regulalry for discussions on the project.
www.behaviouralfinance.net
www.behaviouralfinance.net