ULMS Electronic Module Catalogue

The information contained in this module specification was correct at the time of publication but may be subject to change, either during the session because of unforeseen circumstances, or following review of the module at the end of the session. Queries about the module should be directed to the member of staff with responsibility for the module.
Title BEHAVIOURAL FINANCE
Code ACFI311
Coordinator Dr V Kallinterakis
Finance and Accounting
V.Kallinterakis@liverpool.ac.uk
Year CATS Level Semester CATS Value
Session 2021-22 Level 6 FHEQ Second Semester 15

Pre-requisites before taking this module (other modules and/or general educational/academic requirements):

 

Modules for which this module is a pre-requisite:

 

Programme(s) (including Year of Study) to which this module is available on a required basis:

 

Programme(s) (including Year of Study) to which this module is available on an optional basis:

 

Teaching Schedule

  Lectures Seminars Tutorials Lab Practicals Fieldwork Placement Other TOTAL
Study Hours   12

      12

24

48
Timetable (if known)   60 mins X 1 totaling 12
 
      60 mins X 1 totaling 12
120 mins X 1 totaling 24
 
 
Private Study 102
TOTAL HOURS 150

Assessment

EXAM Duration Timing
(Semester)
% of
final
mark
Resit/resubmission
opportunity
Penalty for late
submission
Notes
Assessment 1: Written Unseen Open Book Examination Assessment Type: Written Exam Duration: 24 hours Weighting: 100% Reassessment Opportunity: Yes Penalty for Late Submission: Standard UoL   24 hours    100       
CONTINUOUS Duration Timing
(Semester)
% of
final
mark
Resit/resubmission
opportunity
Penalty for late
submission
Notes
             

Aims

Provide students with knowledge and understanding of theoretical and empirical limitations of and challenges to the efficient markets hypothesis;

Present the psychological foundations of Behavioural Finance and how they impact upon investors’ rationality and arbitrage;

Provide the opportunity for students to critically evaluate behaviourally induced market puzzles;

Present key behavioural trading patterns from a theoretical perspective and outline their empirical design.


Learning Outcomes

(LO1) Understand the key concepts and issues in behavioural finance

(LO2) Possess a good command of the key theoretical and empirical literature in behavioural finance

(LO3) Have practiced skills of problem-solving and critical thinking

(LO4) Be familiar with the main implications (theoretical and empirical) of Behavioural Finance findings

(LO5) Construct and present critical evaluations of key academic papers in Behavioural Finance

(LO6) Development of key skills in terms of writtencommunication (eg by completing formative class questions and assignment;through a summative assignment and examination)

(LO7) Developmentof key skills in oral presentation (eg through group work)

(LO8) Development of key skills in terms of class participation

(LO9) Development of key skills in terms of planning and time-management (eg preparing for classes; observing assignment deadlines),problem-solving, critical thinking and analysis, numeracy (eg by applyingtheir extant quantitative knowledge in understanding behavioural financeissues) and initiative (eg searching relevant literature and information inpreparation of seminars and summative assignment)

(S1) Teamwork

(S2) Organisational skills

(S3) Communication skills

(S4) IT skills

(S5) International awareness

(S6) Lifelong learning skills

(S7) Ethical awareness


Teaching and Learning Strategies

Teaching Delivery: Mixed, hybrid delivery with social distancing on campus

Teaching Method: Online Asynchronous Learning Materials
Unscheduled Directed Student Hours: 24
Attendance Recorded: Yes

Teaching Method: Seminar
Scheduled Directed Student Hours: 12
Attendance Recorded: Yes

Teaching Method: Group Study
Description: Student led group work/collaborative task Weekly 1 hour session to foster student community and engagement by working with others on their ‘active learning’ activities
Scheduled Student Hours: 12
Attendance Recorded: No

Self-Directed Learning Hours: 102

Skills/Other Attributes Mapping

Skills / attributes: Ethical awareness
How this is developed: during lectures by demonstrating how psychological biases can be exploited as means for various ends in the context of financial regulation
Mode of assessment (if applicable)

Skills / attributes: Lifelong learnin g skills
How this is developed: during lectures and seminars by introducing students to concepts from investor psychology that will help them later in their professional lives in terms of understanding how psychology affects (financial) decision making
Mode of assessment (if applicable): Examination

Skills / attributes: International awareness
How this is developed: during lectures and seminars by assessing how case studies of market phenomena (e.g. financial crises) across various international markets can be explained through behavioural finance
Mode of assessment (if applicable): Examination

Skills / attributes: IT skills
How this is developed: during seminars by instructing students how to use mathematical models in behavioural finance
Mode of assessment (if applicable)

Skills / attributes: Communication skills
How this is developed: during seminars using oral presentations and case study discussions
Mode of assessment (if applicabl e)

Skills / attributes: Organisational skills
How this is developed: during lectures and seminars by emphasizing the research papers students have to familiarize themselves with for each week and how they relate to the preparation of their seminars and exams
Mode of assessment (if applicable)

Skills / attributes: Teamwork
How this is developed: during seminars using group-work
Mode of assessment (if applicable)


Syllabus

 

Efficient Market Hypothesis and its limitations;

Limits to Rationality 1: biases and heuristics;

Limits to Rationality 2: behavioural decision making;

Limits to Arbitrage and the noise trader hypothesis;

Behavioural Puzzles: Theory and Empirical Evidence;

Overreaction, Underreaction and how to profit from them;

Feedback Trading: Theory and Empirical Identification;

Herd Behaviour: Theory and Empirical Identification;

Speculative Bubbles and Financial Crises;

Behavioural Finance and Financial Regulation;

Special topic: guest lecture;

Revision session.


Recommended Texts

Reading lists are managed at readinglists.liverpool.ac.uk. Click here to access the reading lists for this module.