Course Catalogue

Behavioural Finance ACCFIN5278

  • Academic Session: 2026-27
  • School: Adam Smith Business School
  • Credits: 10
  • Level: Level 5 (SCQF level 11)
  • Typically Offered: Semester 2
  • Available to Visiting Students: No
  • Collaborative Online International Learning: No
  • Curriculum For Life: No

Short Description

This course examines how psychological factors influence financial decision-making and challenge traditional models of rational choice and market efficiency. It introduces key behavioural theories and explores their implications for financial behaviour and asset pricing. Students critically evaluate academic research and empirical evidence to develop behaviourally informed financial judgement in academic and professional contexts.

Timetable

6 x 2-hour lectures

2 x 1-hour tutorials.

Requirements of Entry

Students must be registered on one of the associated programmes listed in this course specification.

Excluded Courses

None

Co-requisites

None

Assessment

1. Assignment; Individual; 1700 words; 100%; ILOs 1-4.

Course Aims

The aims of this course are:

■ To develop students' understanding of core behavioural theories of financial decision making and to enable critical evaluation of standard financial models, including expected utility and market efficiency, in light of behavioural finance research.

■ To enable students to apply behavioural finance concepts and empirical evidence to the analysis of individual decision making and financial market outcomes, including stock market anomalies and puzzles.

■ To develop students' capacity for critical judgement and effective communication when interpreting and evaluating behaviourally informed financial arguments.

Intended Learning Outcomes of Course

By the end of this course students will be able to:

1. Critically evaluate normative and descriptive models of decision making and assess their implications for individual financial behaviour.

2. Analyse and evaluate the role of heuristics, biases, and behavioural concepts in shaping financial decision making, and assess their consequences for market efficiency and asset pricing anomalies.

3. Apply behavioural finance concepts and empirical evidence to interpret stock market anomalies and behavioural challenges to market efficiency.

4. Communicate behaviourally informed financial analyses clearly and coherently in academic contexts.

Minimum Requirement for Award of Credits

Students must submit at least 75% by weight of the components (including examinations) of the course’s summative assessment.