Behavioural Finance

The choices we make hold significant sway over the financial well-being of your company. In today's economic climate, investors and business leaders grapple with comprehending how financial markets respond to fresh economic and financial data. Beyond the rudimentary analysis of financial statements, understanding market sentiments and the psychology of investors holds equal importance in financial decision-making. Behavioral finance delves into the impact of psychology on the actions of financial practitioners. Throughout this course, participants will explore a spectrum of decision-making biases and errors in information processing that shape our financial decisions.

Key features of this training course include:

• Modern portfolio theory and the concept of the rational investor
• Emotional Finance
• Psychology of Risk and Behavioral Biases
• Behavioral Corporate Finance
• Investor Behavior

By the end of this training course, participants will be able to: 

• Define behavioral finance and its implication on financial markets
• Identify the investor psychology and analyze trading  biases
• Understand cognitive biases and explore their root causes with real life examples
• List the most common emotional biases and discuss their causes with examples
• Understand loss aversion and other biases that contribute to its effect
• Study the herding bias and other social factors that distort decision-making

This training course is suitable to a wide range of professionals but will greatly benefit:

• Board level members who wish to develop their understanding of cognitive financial decisions
• Investment  Professionals  working with Financial sector
• Risk Management directors
• Financial Analysts
• Capital Markets officials
• Professionals seeking to develop their understanding of Behavioral Finance
• Equity Sales and Portfolio Mangers

This training course will utilise a variety of proven adult learning techniques to ensure maximum understanding, comprehension and retention of the information presented. This includes:

• Interactive Case Studies from the real world/delegates’ company
• Discussion and Evaluation of the latest international tools & techniques
• Role play
• Pre & Post Course Assessments

Participants will also be given a detailed set of handouts and examples in both printed and electronic format

•  Conceptual definition of finance : Hard versus Soft Finance
• Understand the financial system operators: Arbitrageurs, Speculators and Hedgers
•  What is behavioral finance?
• Traditional portfolio theory – A brief recap
• The risk profiles of investors: Risk neutral, Risk Takers and Risk Adverse
•  Market sentiment &  Stock market crashes

• Heuristics or Rules of Thumb
•  Neuroeconomics and Neurofinance
•  Emotional Finance: The Role of the Unconscious in Financial Decisions
•  Experimental Finance
• The Psychology of Risk
• Psychological Influences on Financial Regulation and Policy 

• Market Inefficiency
•  Belief- and Preference-Based Models
• Disposition Effect
• Overconfidence
• Familiarity Bias
• Limited Attention & other behavioral biases

• Financing Decisions
• Capital Budgeting and Other Investment Decisions
• Dividend Policy Decisions
• Loyalty, Agency Conflicts, and Corporate Governance
• Initial Public Offerings
• Mergers and Acquisitions

• Trust Behavior: The Essential Foundation of Financial Markets
• Individual Investor Trading
• Cognitive Abilities and Financial Decisions
• Pension Participant Behavior
• Institutional Investors
• Derivative Markets

Anderson Certificate of Completion will be provided to delegates who attend and complete the course