SARVAJANIK UNIVERSITY S. R, LUTHRA INSTITUTE OF MANAGEMENT Cours Behavioural Finance MGMB16301 Course Class Functional Elective sit Credit | 04 [Contact Hours: 40 Course Overview: This course provides a comprehensive introduction to the subject of behavioural finance which is aniche area in the field of financial and investment decision making. The focus ofthis subject is to make students familiar with the concepts and theories of behavioural finance and analyse the impact of same on individual and corporate decision making. Upon completion of this course, you will be able to: “Understand key behavioural finance concepts and their contrast to traditional finance theories. *Understand various biases and heuristics and there by analysing behavioural aspects of individual and corporate decision making. + Evaluate various theories of behavioural finance and understand their application in real time situations. This course explores behavioural finance concepts and theories. The lecture sessions introduce you to established concepts of behavioural finance and its contrast to traditional finance. Course concepts are illustrated primarily through lectures and case discussions, These discussions are complemented with readings that further elaborate on key concepts, You will have a chance to illustrate your ability to apply the framework in this course through small assignments, case-studies, quiz and mid-term, final exams. Learning Outcomes: ‘The Learning Outcomes to be attained through this course are: LOI J Analyse the conceptual framework of behavioural finance based on traditional and “Appraise the various theries/ concepts of behavioural finance that can aid in better financial decision of aie Mapping Learning Outcomes to Program Outcomes: Learning Outcomes are explicit statements of what a learner is expected to know / do / value at the completion of a unit of study. Learning Outcomes state both ~ the substance of learning and how will the learning be attained. They help learners understand the importance of the information and what they will gain from their engagement with the learning activity. The Learning Outcomes to be attained through this course are: Page 1of 6SARVAJANIK UNIVERSITY S. R, LUTHRA INSTITUTE OF MANAGEMENT Course: Behavioural Finance (BF) | Course Code: (MGMB16301_— Course Class: Functional Elective | Semester: m Credits: I 04 |Contact Hours: 40 POl | PO2 | POS | POS ~=POS POS | POT | POS LOL 3 3 2 2 i a 1 2 102 3 3 3 2 2) 2 2 3 LO3 3 3 2 B 1 1 1 2 104 ar 3 2 2 2 3 1 2 G—High correlation, 2— Medium correlation, | Low correlation, —-- - No correlation) ‘Course Content: Module Module Contents Learning | Contact | Marks Outcomes | Hours I Brief overview of rational finance and 1 10 12 classical finance theories: © Rise of the rational market hypothesis © Brief overview of classical finance theories: ‘© Expected utility theory ‘* Modern portfolio theory Capital Asset Pricing model Efficient market hypothesis MM theory ~ investors are rational Arbitrage pricing theory ‘+ Random walk hypothesis Introduction to Behavioural Finance: ‘* Challenging classical finance theories — Introduction and history of behavioural finance * Meaning and Assumptions of behavioural finance ‘© Contrasting classical finance with behavioural finance. ‘© Important contributors of behavioural finance Financial market anomalies © Fundamental anomalies © Technical anomalies * Calendar or seasonal anomalies Market Bubbles: Page 2 of 6SARVAJANIK UNIVERSITY S. R. LUTHRA INSTITUTE OF MANAGEMENT (Course: | Behavioural Finance (BF) | Course Code: MGMBI16301__| Course Class: Functional Elective Semester: _ | Ti | Credits: 04 |Contact Hours: 40 iristics and Biases Self-attribution Familiarity Groupthink bias, House money effect, Herd Behaviour, etc Implication for investor and diagnostic testing of biases Biases and outcomes: ‘Interaction amongst biases * Outcomes of biasesSARVAJANIK UNIVERSITY S. R. LUTHRA INSTITUTE OF MANAGEMENT Course: Behavioural Finance (BF) | Course Code: MGMB16301_—_ | Course Class: Functional Elective _ Semester: TIL | Credits: 04 Contact Hours: 40 } IV Behavioural Corporate Finance: ‘* Approaches to behavioural corporate finance ‘© Issues related to valuation, dividend policy, mergers and acquisitions Forensic Accounting: Classifications of fraud Behavioural aspects of Fraud Origin and growth of forensic * Motivators of fraud ‘+ Triangle of fraud action ‘+ Fraud Scale and Fraud Diamond * MICE Tools in Forensic Accounting + Ratio analysis © Data mining . Benford's Law (pectic wo feel : Forensic Accounting in India =| Page 4of6SARVAJANIK UNIVERSITY §. R. LUTHRA INSTITUTE OF MANAGEMENT | Behavioural Finance (BF)_| Course Code: MGMB16301 | Functional Elective | Semester: Brig | 4 |Contact Hours: 40 ‘Component Weightage ‘Semester End Exam (SE) - Summative 350 marks ‘Continuous Evaluation (CE) - Formative 40 marks “Mid — semester Exam (M) - Format 30 marks Semester End Exam: ‘The 2-hour Semester end exam shall be of 50 marks and shall include all topics, discussions and lectures covered during the semester. Continuous Evaluation: Continuous evaluation shall assess the student throughout the semester. The subject faculty shall assess the students through various tools such as quizzes, case discussions, class room ties, seminars, paper presentations, role plays, class participation, etc. acti Mid-Semester Exam: The 1-hour Mid — Semester Exam shall be of 30 marks and shall be conducted half-way through the semester. Course Material Reference Books: Sr. Title of the Book ‘Authors Publication T__| Behavioural Finance Prasanna Chandra Hill (Latest Edition) 2 | Behavioural Finance MM. Sulphey PHI (Latest Edition) 3 | Behavioural Finance and Wealth | Michael M Pompian Management 4 | The Dhandho Investor Mobnish Pabrai 5 ‘The Little Book of Behavioral James Montier Investing: How Not to be Your Own Worst Enemy Page 5 of 6SARVAJANIK UNIVERSITY S. R. LUTHRA INSTITUTE OF MANAGEMENT Course: Behavioural Finance (BF) | Course Code: | MGMB16301 Course Class: Functional Flective | Semester: { cy Credits: | 04 _ Contact Hours: } 40 Newspapers / Magazines / Journals: 1. News Paper: Business Standard, Economic Times, Times of India, Outlook Money (Magazine), Money Today (Magazine) 2. Journals: Journal of Behavioural Finance, Journal of Behavioural and Experimental Finance, International Journal of Behavioural Accounting and Finance, The IUP Journal of Behavioural Finance, ete Web resources: 1. Official websites of corporates. 2. lhttpsulswww.bseindia.com/ : Official website of Bombay Stock Exchange 3. ttpsv/snww.nseindia.com/ : Official website of National Stock Exchange 4. ttpsuswwwarbisona.in/ : Official website of Reserve Bank of India Page 6 of 6 Q