View Specification DocumentPsychology and Financial Markets ACCFIN4063
- Academic Session: 2026-27
- School: Adam Smith Business School
- Credits: 20
- Level: Level 4 (SCQF level 10)
- Typically Offered: Semester 2
- Available to Visiting Students: Yes
- Collaborative Online International Learning: No
- Curriculum For Life: No
Short Description
This course builds on the material covered in Finance 1, and Finance 2. The Psychology and Financial Markets course goes a step further exploring how behavioural factors influence managers and investor decisions.
Timetable
10 x 2-hour lectures
Requirements of Entry
Normally a grade D3 or above in Finance 2 or equivalent.
Excluded Courses
Behavioural Economics: Theory and Applications (ECON4049)
Co-requisites
None
Assessment
1. In-course exam: online; Individual; 30 minutes; 15%; ILO's 1-2.
2. Written assignment, including essay; Group; 2750 words; 25%; ILOs 2,3,6.
3. Degree exam: in-person; Individual; 90 minutes; 60%; ILOs 1-5.
Main Assessment In: April/May
Course Aims
The aims of this course are:
• to offer students a stimulating insight into the emerging field of behavioural finance and to enhance students' ability to critically interpret the behaviours associated with financial decision-making.
• to deepen and broaden students' conceptual understanding of financial decision-making.
• to encourage students to critically evaluate certain established financial models and understandings in light of emerging behavioural finance research and to analyse the ways in which existing models and understandings in finance might need to change to accommodate the behavioural finance research.
• to develop students' ability to recognise the linkages between theoretical knowledge drawn from research and real practical financial decision making and build confidence that will facilitate the putting of theoretical behavioural finance knowledge into action in financial decision-making.
Intended Learning Outcomes of Course
By the end of this course students will be able to:
1. Apply expected utility theory and prospect theory when making decisions under uncertainty.
2. Analyse the role played by heuristics, biases, and emotions in decision making.
3. Critically evaluate the implications of heuristics, biases, and emotions in a financial context.
4. Critically appraise the behavioural explanations for market anomalies and puzzles.
5. Critically judge managerial decision making within the context of behavioural corporate finance.
6. Work collaboratively in a group to produce a combined piece of coursework, by liaising with other class members, allocating tasks and co-ordinating group meetings.