Behavioral Finance

obligatory courses

Classroom

The classes will present modern concepts of the impact of human behavior on capital management decisions. Students learn the origins and main concepts of behavioral finance. The reference point will be the basic elements of the neoclassical approach to finance. Approaches in the aspect of psychological determinants of decision-making (prospect theory) will be presented and discussed. Practical examples of collective investment models and the development of other techniques will be discussed, taking into account the learning process. Additionally, the latest trends in behavioral finance will be presented, i.e. behavioral determinants of financial crises and socio-ethical reasons for investing in the stock market.

The detailed thematic scope of the subject has been divided into the following 14 main parts:

Lecture:

1. Classical finance theory and behavioral finance

2. Origins of behavioral finance (schools)

3. Perspective theory and conditions of reality perception

4. Decisions in conditions of risk and uncertainty

5. The process of supporting investment decisions (social trading).

6. Fortune telling and forecasting - analysis of research on the impact of forecasts on the market

7. The importance of volatility and liquidity

8. Identification of behavioral factors

9. Selected stock exchange anomalies

10. Information and the concept of noise in financial markets

11. Behavioral inclinations - introduction

12. Behavioral inclinations of stock investors

13. Stock market sentiment indexation (e.g. Fear Index)

14. Selected models of behavioral finance.

1. Piotr Zielonka, Giełda i psychologia. Behawioralne aspekty inwestowania na rynku papierów wartościowych, CeDeWu, Warszawa 2011

2. Czerwonka, M. Gorlewski, B. (2012). Finanse behawioralne. Warszawa: Oficyna Wydawnicza SGH.

3. A. Szyszka, Finanse behawioralne: Nowe podejście do inwestowania na rynku kapitałowym, Wydawnictwo Uniwersytetu Ekonomicznego w Poznaniu, Poznań 2009;

4. S. Buczek, Efektywność informacyjna rynków akcji. Teoria a rzeczywistość, SGH w Warszawie, Oficyna Wydawnicza, Warszawa 2005

1. Dean Lundell, Sun Tzu – Sztuka Wojny dla graczy giełdowych i inwestorów, IFC Press, 1999

2. Nassim Nicholas Taleb, Czarny łabędź. Jak nieprzewidywalne zdarzenia rządzą naszym życiem, Wydawnictwo Zysk i S-ka, 2020,

3. Szyszka, A. (2013). Behavioral Finance and Capital Markets. How Psychology Influences Investors and Corporations. New York: Palgrave Macmillan

Student after completing the course:

In terms of knowledge:

K_W01

Knows and understands in-depth research methodology and terminology in the field of management and quality science and in complementary disciplines (economics and finance, legal sciences), in particular in the area of ​​financial management and accounting

K_W02

Knows and understands in-depth the principles, procedures and practices relating to financial management in organizations, accounting, management of financial institutions and the strategy of financial institutions.

K_W03

Knows and understands in-depth economic theories and models regarding the functioning of organizations and the entire economy.

K_U01

Is able to use the theory of the discipline of management and quality science and complementary sciences (economics and finance, legal sciences) to recognize, diagnose and solve problems related to financial decisions in organizations and management of financial institutions, using the appropriate selection of sources and adapting existing or developing new methods.

K_U03

Is able to independently and collectively prepare analyses, diagnoses and reports on complex and unusual problems related to financial management in organizations, accounting, management of financial institutions and strategies of financial institutions, and present them communicatively, also in English - using IT and communication tools.

In terms of attitudes:

Knows and understands:

K_K01

Is ready to assess and critically approach complex situations and phenomena related to financial management in organizations, accounting, management of financial institutions and strategists of financial institutions.

K_K03

Is ready to comply with and develop professional ethical standards.

Learning outcomes will be verified on an ongoing basis through tasks performed by participants during classes and finally during the course completion (test).

Assessment in writing - multiple choice test.

Test scoring:

Scoring: each correct answer to a question with multiple choice options is worth one point;

10 points – satisfactory

11 – 12 points – satisfactory +

13 – 14 points – good

15 – 16 points – good +

17 points – very good