Behavioral Finance 2600-MSFRdz2rkdiFB
1.A multi-faceted approach to behavior in the world of finance - not only the problem of rationality
• traditional versus behavioral view of the world of finance
• financial psychology as a synthesis of traditional and behavioral approaches
• the world of finance from the perspective of discursive psychology: the rhetoric of financiers and literature on finance
• market behavior during the Covid-19 pandemic
2. Selected psychological aspects of financial decisions and behavior
• heuristics and cognitive effects
• perspective theory and its criticism
• gossip and panic and the functioning of participants in financial institutions
• Pygmalion effect on financial markets
• psychosocial mechanisms of the speculative bubble
3. Models of behavioral finance
• basic models: DSSW, LSV, investor sentiment model, DHS, behavioral portfolio model, HS
• models based on different types of analysis
• models relating to the situation and behavior of investors
• models that take into account profit forecasts
• models using probability distributions
• models of herd behavior
• other selected models of mainstream behavioral finance
• behavioral finance models emerging from the critical management trend (CMS)
• outline of an understanding model using a historical perspective (inspired by David Orrell's proposals)
4. Event study as a method of testing behavior in behavioral finance
5. Modeling of the Polish financial market
Type of course
Mode
Course coordinators
Learning outcomes
Student after finishing the course:
In terms of knowledge, he/she knows and understands:
K_W01 - in-depth research methodology and terminology in the field of management and quality science and in complementary disciplines (economics and finance), in particular in the area of financial management and accounting;
K_W02 – in-depth principles, procedures and practices regarding financial management in organizations, accounting, management of financial institutions and strategies of financial institutions;
K_W03 – in-depth economic theories and models regarding the functioning of organizations in the entire economy;
In terms of skills he/she can:
K_U01 - use the theories of the management and quality science discipline and complementary sciences (economics and finance) to recognize, diagnose and solve problems related to financial decisions in organizations and the management of financial institutions, using the appropriate selection of sources and adapting existing or developing new methods;
K_U02 – correctly interpret the assumed economic processes and their impact on financial decisions in organizations, the functioning of the organization and the entire economy, using the appropriate selection of sources;
K_U03 - 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.
K_U05 - plan, organize and manage teamwork.
K_U06 - has the ability to self-educate, improve acquired qualifications and support others in this area.
In terms of attitudes, he/she is ready to:
K_K01 – assessment of a critical approach to complex situations and phenomena related to financial management in organizations, accounting, management of financial institutions and strategies of financial institutions;
K_K03 – to observe and develop ethical standards.
Effects defined for specialization:
In terms of knowledge, the graduate knows and understands:
S5_W01 - in-depth terminology regarding the capital market and investment consulting in the field of management and quality sciences and in complementary disciplines, in particular in the area of market behavior (economics and finance, legal sciences) (K_W01)
S5_W02 - in-depth principles, procedures and practices regarding the capital market and investment consulting, in particular in the area of market behavior (K_W02)
S5_W03 - in-depth economic theories and models relating to the capital market and investment consulting, in particular in the area of market behavior (K_W03)
In terms of skills, the graduate is able to:
S5_U01 - 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 the capital market and investment consulting, using the appropriate selection of sources and adapting existing or developing new methods (K_U01 )
S5_U02 - correctly interpret complex technological, social, political, legal, economic and ecological processes and phenomena and their impact on the capital market and investment consulting, using the appropriate selection of sources (K_U02)
S5_U03 - independently and collectively prepare analyses, diagnoses and reports on complex and unusual problems related to the capital market and investment consulting and present them communicably, also in English - using IT and communication tools (K_U03)
S5_U04 - plan, organize and manage teamwork (K_U05)
S5_U05 – has the ability to self-educate, improve acquired qualifications and support others in this area (K_U06)
In terms of social competences, the graduate is ready to:
S5_K01 - assessment and critical approach to complex situations and phenomena related to the capital market and investment consulting (K_K01)
S5_K02 - observing and developing professional ethical standards with the capital market and investment consulting (K_K03)
Assessment criteria
Project made on market data in accordance with the instructions given during classes (90%), activity (10%).
A project based on market data in accordance with the instructions given during classes.
In total, you will be able to earn 100 points during the exercises, the number of which will determine the final grade:
0-50 points – grade 2
51-60 points – grade 3
61-70 points – grade 3.5
71-80 points – grade 4
81-90 points – grade 4.5
91-100 points – grade 5
Bibliography
P. Chodnicka-Jaworska, P. Jaworski, Wrażliwość rynku akcji na publikacje danych rynkowych w czasie pandemii COVID-19, Wydawnictwo Naukowe Wydziału Zarządzania UW, 2020;
P. Chodnicka-Jaworska, Credit rating na rynku finansowym, PWE, 2019;
K. Cuthbertson, D. Nitzsche, Quantitative Financial Economics: Stocks, Bonds and Foreign Exchange, 2nd Edition, Wiley, 2004.
A. Szyszka, Finanse behawioralne: Nowe podejście do inwestowania na rynku kapitałowym, Wydawnictwo Uniwersytetu Ekonomicznego w Poznaniu, Poznań 2009;
P. Zielonka, Behawioralne aspekty inwestowania na rynku papierów wartościowych, CeDeWu, Warszawa 2008;
M. Czerwonka, B. Gorlewski, Finanse behawioralne. Zachowania inwestorów i rynku, Wydawnictwo SGH, Warszawa 2008.
Additional information
Additional information (registration calendar, class conductors, localization and schedules of classes), might be available in the USOSweb system: