Core Module Information
Module title: Behavioural Finance: Psychology and Financial Decisions

SCQF level: 11:
SCQF credit value: 20.00
ECTS credit value: 10

Module code: FIN11135
Module leader: Antonios Siganos
School The Business School
Subject area group: Accounting and Finance

There are no pre-requisites for this module to be added

Description of module content:

This module is a combination of material from the field of psychology and the application to financial markets. The aim is to be aware of these unconscious biases to debias. We cover the prospect theory according to which we disproportionately hate losing more than winning. Framing is another example according to which the framing of a question influences our decisions. Based on psychology, the module explains several patterns in financial markets such as the home bias, disposition effect, momentum effect, equity premium puzzle, and financial bubbles. This module explores to the extent of which financial managers take advantage of investor irrationality and whether sentiment and overconfidence influence investor and managerial decisions.

Learning Outcomes for module:

LO1: Critically analyse the significance of the most commonly observed forms of decision-making bias;
LO2: Critically analyse situations where managerial and investor decisions have been influenced through bias and heuristics;
LO3: Recommend corrections to standard finance models to account for usage by agents subject to bias.

Full Details of Teaching and Assessment
2023/4, Trimester 1, FACE-TO-FACE,
Occurrence: 001
Primary mode of delivery: FACE-TO-FACE
Location of delivery: CRAIGLOCKHAR
Member of staff responsible for delivering module: Antonios Siganos
Module Organiser:

Student Activity (Notional Equivalent Study Hours (NESH))
Mode of activityLearning & Teaching ActivityNESH (Study Hours)
Face To Face Lecture 20
Face To Face Seminar 20
Independent Learning Guided independent study 160
Total Study Hours200
Expected Total Study Hours for Module200

Type of Assessment Weighting % LOs covered Week due Length in Hours/Words
Essay 50 LO2 or LO3 7 HOURS= 00.00, WORDS= 2000
Centrally Time Tabled Examination 50 LO1-LO3 14/15 HOURS= 02.00
Component 1 subtotal: 50
Component 2 subtotal: 50
Module subtotal: 100

Indicative References and Reading List - URL:
Contact your module leader