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Information
| Code | MG1813 |
| Name | Behavioral Finance |
| Term | 2024-2025 Academic Year |
| Term | Fall and Spring |
| Duration (T+A) | 4-0 (T-A) (17 Week) |
| ECTS | 10 ECTS |
| National Credit | 4 National Credit |
| Teaching Language | Türkçe |
| Level | Doktora Dersi |
| Type | Normal |
| Mode of study | Yüz Yüze Öğretim |
| Catalog Information Coordinator | Prof. Dr. SERKAN YILMAZ KANDIR |
| Course Instructor |
1 |
Course Goal / Objective
The purpose of this course is to study the basics of behavioral finance and asset pricing models and their applications on investments in financial markets
Course Content
In this course the basic concepts and theories of behavioral finance with the efficient market hypothesis, and market anomalies will be investigated.
Course Precondition
None
Resources
1.Shefrin, Hersh (2000), Beyond Greed and Fear: Understanding Behavioral Finance and the Psychology of Investing (First Edition), USA: Harvard Business School Press. 2.Shleifer, Andrei (2000), Inefficient Markets An Introduction to Behavioral Finance (First Edition), Great Britain: Oxford University Press. 3.Shefrin, Hersh(2005), A Behavioral Approach to Asset Pricing, Elsevier Academic Press 4.Döm, Serpil (2003), Yatırımcı Psikolojisi, Değişim Yayınları. İstanbul 5. Karan, Mehmet Baha(2004), Yatırım Analizi ve Portföy Yönetimi, Gazi Kitabevi, Ankara 6. Canbaş, Serpil ve Doğukanlı Hatice(2007), Finansal Pazarlar, Finansal Kurumlar ve Sermaye Piyasası Analizleri, Karahan Kitabevi, Adana 7.Goldberg, Von Nitzsch(2001), Behavioral Finance, John Wiley and Sons.
Notes
1.Baker, Malcolm ve Jeffrey Wurgler (2006), “Investor sentiment and the cross-section of stock returns”, Journal of Finance, c.61. S.4. ss.1645-1680. 2. Bernard, Victor L. ve Jacob K. Thomas (1989), “Post-earnings-announcement drift: Delayed price response or risk premium?”, Journal of Accounting Research, c.27, ss.1-36.
Course Learning Outcomes
| Order | Course Learning Outcomes |
|---|---|
| LO01 | Distinguishes the financial markets and the efficient Markets Hypothesis |
| LO02 | Explains the expectations theory |
| LO03 | Identifies herding in financial markets |
| LO04 | Recognizes theory of underreaction, momentum trading, and overreaction in asset markets |
| LO05 | Recognizes noise trading and invester sentiment |
Relation with Program Learning Outcome
| Order | Type | Program Learning Outcomes | Level |
|---|---|---|---|
| PLO01 | Bilgi - Kuramsal, Olgusal | Explains the basic theoretical models for finance function | 5 |
| PLO02 | Bilgi - Kuramsal, Olgusal | Lists and identifies the theories that will contribute to the development of scientific methods and tools used in finance | 5 |
| PLO03 | Bilgi - Kuramsal, Olgusal | Investigates how to model theorems in finance field and how to associate these models with the the quantitive decision making techniques | |
| PLO04 | Bilgi - Kuramsal, Olgusal | Explains how to interpret the findings as a result of the application of statistical and theoretical models used in financial management methods. | |
| PLO05 | Bilgi - Kuramsal, Olgusal | Creates sufficient knowledge to find a solution to the problems that might arise | |
| PLO06 | Bilgi - Kuramsal, Olgusal | Contributes to the applied business management by following the basic steps of the methods used in finance | 5 |
| PLO07 | Bilgi - Kuramsal, Olgusal | Achieves optimal results using techniques that help to increase the financial efficiency | 4 |
| PLO08 | Bilgi - Kuramsal, Olgusal | Encourages taking responsibility, claiming the lead and working effectively in a team and / or individually. | |
| PLO09 | Beceriler - Bilişsel, Uygulamalı | Keeps track of the latest developments in the field as a recognition of the need for lifelong learning and constant renewal | |
| PLO10 | Beceriler - Bilişsel, Uygulamalı | Utilizes scientific sources in the field, collect the data, synthesizes the obtained information and presents the outcomes effectively | |
| PLO11 | Yetkinlikler - Bağımsız Çalışabilme ve Sorumluluk Alabilme Yetkinliği | Has a good command of Turkish, as well as at least one another foreign language in accordance with the requirements of academic and work life | |
| PLO12 | Yetkinlikler - Öğrenme Yetkinliği | Implements new research methods that will contribute to the development of the finance field | |
| PLO13 | Yetkinlikler - Öğrenme Yetkinliği | Develops new guidelines for the financial managers’ decision making processes by researching on sub-disciplines of the finance field. | 5 |
| PLO14 | Yetkinlikler - Öğrenme Yetkinliği | Designs appropriate financial approaches, applications and methodologies in accordance with the business sector and the market in which they operate | 4 |
Week Plan
| Week | Topic | Preparation | Methods |
|---|---|---|---|
| 1 | Efficient markets hypothesis and Definitions | Reading the first chapter of Inefficient Markets An Introduction to Behavioral Finance | Öğretim Yöntemleri: Anlatım, Tartışma |
| 2 | Predictability of Security Prices | Reading the 6th chapter of A Behavioral Approach to Asset Pricing | Öğretim Yöntemleri: Anlatım, Tartışma, Alıştırma ve Uygulama |
| 3 | Expectations Theory | Reading the 7th chapter of A Behavioral Approach to Asset Pricing | Öğretim Yöntemleri: Anlatım, Soru-Cevap |
| 4 | Expectations Theory-2 | Reading the 1st chapter of A Behavioral Approach to Asset Pricing | Öğretim Yöntemleri: Anlatım, Soru-Cevap |
| 5 | Mental Accounting | Reading the 3rd chapter of Inefficient Markets An Introduction to Behavioral Finance | Öğretim Yöntemleri: Anlatım, Beyin Fırtınası |
| 6 | Herding | Reading the 3rd chapter of Inefficient Markets An Introduction to Behavioral Finance | Öğretim Yöntemleri: Anlatım, Beyin Fırtınası |
| 7 | Herding-2 | Reading the 5th chapter of A Behavioral Approach to Asset Pricing | Öğretim Yöntemleri: Soru-Cevap, Beyin Fırtınası |
| 8 | Mid-Term Exam | Ölçme Yöntemleri: Yazılı Sınav |
|
| 9 | Noise Traders and Investor Sentiment | Reading the 2nd chapter of Inefficient Markets An Introduction to Behavioral Finance | Öğretim Yöntemleri: Soru-Cevap, Beyin Fırtınası |
| 10 | Noise Traders and Investor Sentiment-2 | Reading the 2nd chapter of Inefficient Markets An Introduction to Behavioral Finance | Öğretim Yöntemleri: Anlatım, Soru-Cevap, Beyin Fırtınası |
| 11 | Over and Under Reaction | Reading the 5th chapter of Inefficient Markets An Introduction to Behavioral Finance | Öğretim Yöntemleri: Anlatım, Soru-Cevap, Beyin Fırtınası |
| 12 | Over and Under Reaction-2 | Reading the 5th chapter of Inefficient Markets An Introduction to Behavioral Finance | Öğretim Yöntemleri: Anlatım, Tartışma |
| 13 | Momentum Trading Strategies | Reading the 7th chapter of A Behavioral Approach to Asset Pricing | Öğretim Yöntemleri: Anlatım, Tartışma |
| 14 | Reversal Trading Strategies | Reading the 7th chapter of A Behavioral Approach to Asset Pricing | Öğretim Yöntemleri: Anlatım, Beyin Fırtınası |
| 15 | Current events on behavioral Finance | Current Articles on topic | Öğretim Yöntemleri: Anlatım, Beyin Fırtınası |
| 16 | Term Exams | Ölçme Yöntemleri: Yazılı Sınav |
|
| 17 | Term Exams | Ölçme Yöntemleri: Yazılı Sınav |
Student Workload - ECTS
| Works | Number | Time (Hour) | Workload (Hour) |
|---|---|---|---|
| Course Related Works | |||
| Class Time (Exam weeks are excluded) | 14 | 4 | 56 |
| Out of Class Study (Preliminary Work, Practice) | 14 | 12 | 168 |
| Assesment Related Works | |||
| Homeworks, Projects, Others | 1 | 2 | 2 |
| Mid-term Exams (Written, Oral, etc.) | 1 | 12 | 12 |
| Final Exam | 1 | 24 | 24 |
| Total Workload (Hour) | 262 | ||
| Total Workload / 25 (h) | 10,48 | ||
| ECTS | 10 ECTS | ||