Behavioral Finance (ISL314) Course Detail

Course Name	Course Code	Season	Lecture Hours	Application Hours	Lab Hours	Credit	ECTS
Behavioral Finance	ISL314	Area Elective	3	0	0	3	5

Pre-requisite Course(s)
N/A

Course Language	Turkish
Course Type	Elective Courses
Course Level	Bachelor’s Degree (First Cycle)
Mode of Delivery	Face To Face
Learning and Teaching Strategies	Lecture, Demonstration, Discussion.
Course Coordinator
Course Lecturer(s)	Asst. Prof. Dr. Naime Usul
Course Assistants
Course Objectives	The primary objective of this course is to offer a comprehensive overview of the behavioral foundations underlying financial decision-making and their practical applications within the field of finance. Behavioral finance, an emergent yet rapidly expanding discipline, endeavors to elucidate economic decisions that deviate from the predictions of traditional economic and financial theories. This field provides insights into various seemingly irrational and inconsistent patterns observed in investor behavior, financial markets, and corporate management, thereby complementing conventional paradigms.
Course Learning Outcomes	The students who succeeded in this course; Understand what behavioral finance is, how it differs from modern finance, and how it impacts financial markets Describe the most common self-deception biases, their causes, and potential measures you can take to prevent them 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
Course Content	The course begins with an examination of standard finance theories, with a particular focus on the efficient market hypothesis. Subsequently, it addresses a range of financial market phenomena that are challenging to explain through traditional theories alone covering cognitive biases and heuristics. The course then transitions to more realistic market dynamics, exploring alternative theoretical frameworks to enhance our understanding of the observed behaviors in financial markets and among thei

Weekly Subjects and Releated Preparation Studies

Week	Subjects	Preparation
1	Introduction to the course	Gain information about the general content and fundamental concepts of the course.
2	Rational Markets Hypothesis and the Challenge by Behavioralists	Research the core concepts of the Efficient Market Hypothesis and Behavioral Finance.
3	Foundations of Rational Finance	Learn the fundamentals and main principles of Rational Finance.
4	Prospect Theory and Mental Accounting	Gather information on Expectation Theory and Mental Accounting concepts.
5	Prospect Theory and Mental Accounting Cont’d.	Obtain deeper knowledge on Expectation Theory and Mental Accounting.
6	Challenges to Efficient Market Hypothesis	Research criticisms and challenges to the Efficient Market Hypothesis.
7	Heuristics and Biases	Collect information on applications and theories related to heuristics and biases.
8	Midterm Week	Review and summarize previous topics in preparation for the midterm exam.
9	Heuristics and Biases Cont’d.	Acquire detailed information on heuristics and biases and review relevant applications.
10	Overconfidence	Learn about overconfidence and its effects, and research examples.
11	Emotional Factors and Social Forces	Gather information on the impact of emotional factors and social forces on investment decisions.
12	Investor Behavior	Study investor behavior and its effects on the market.
13	Market Outcomes	Investigate market outcomes and the impact of Behavioral Finance on markets.
14	Behavioral Corporate Finance	Learn about Behavioral Corporate Finance topics and review examples.
15	Review	Review and summarize all course topics.
16	Final Exam	Revise all topics and prepare thoroughly for the final exam.

Sources

Course Book	1. Kıyılar, M. & Akkaya, M. (2016) Davranışsal Finans, Literatür Yayınevi.
Other Sources	2. Nofsinger, J.R. (2014). Yatırım Psikolojisi, Çev. Gazel, Sümeyra, Nobel Yayınevi.

Evaluation System

Requirements	Number	Percentage of Grade
Attendance/Participation	-	-
Laboratory	-	-
Application	-	-
Field Work	-	-
Special Course Internship	-	-
Quizzes/Studio Critics	-	-
Homework Assignments	-	-
Presentation	-	-
Project	1	20
Report	-	-
Seminar	-	-
Midterms Exams/Midterms Jury	1	40
Final Exam/Final Jury	1	40
Toplam	3	100

Percentage of Semester Work	60
Percentage of Final Work	40
Total	100

Course Category

Core Courses	X
Major Area Courses
Supportive Courses
Media and Managment Skills Courses
Transferable Skill Courses

The Relation Between Course Learning Competencies and Program Qualifications

#	Program Qualifications / Competencies	Level of Contribution
#	Program Qualifications / Competencies	1	2	3	4	5
1	Acquiring the skills of understanding, explaining, and using the fundamental concepts and methods of economics
2	Acquiring the skills of macro level economic analysis
3	Acquiring the skills of micro level economic analysis
4	Understanding the formulation and implementation of economic policies at the local, national, regional, and/or global level
5	Learning different approaches on economic and related issues
6	Acquiring the quantitative and/or qualitative techniques in economic analysis
7	Improving the ability to use the modern software, hardware and/or technological devices
8	Developing intra-disciplinary and inter-disciplinary team work skills
9	Acquiring an open-minded behavior through encouraging critical analysis, discussions, and/or life-long learning
10	Adopting work ethic and social responsibility
11	Developing the skills of communication.
12	Improving the ability to effectively implement the knowledge and skills in at least one of the following areas: economic policy, public policy, international economic relations, industrial relations, monetary and financial affairs.

ECTS/Workload Table

Activities	Number	Duration (Hours)	Total Workload
Course Hours (Including Exam Week: 16 x Total Hours)	16	3	48
Laboratory
Application
Special Course Internship
Field Work
Study Hours Out of Class	14	2	28
Presentation/Seminar Prepration
Project	1	14	14
Report
Homework Assignments
Quizzes/Studio Critics
Prepration of Midterm Exams/Midterm Jury	1	10	10
Prepration of Final Exams/Final Jury	1	25	25
Total Workload			125