Information Package / Course Catalogue
Behavioral Finance
Course Code: ISL434
Course Type: Area Elective
Couse Group: First Cycle (Bachelor's Degree)
Education Language: Turkish
Work Placement: N/A
Theory: 3
Prt.: 0
Credit: 3
Lab: 0
ECTS: 5
Objectives of the Course

Explicating the psychological decision making based on investments in the context of corporate finance and capital markets

Course Content

Game Theory, Expected Utility Theory , active-market hypothesis, portfolio theory, Capital Asset Pricing Model, Arbitrage Pricing Theory, occurance of Behavioral Finance, Expectation Theory, Fundamentals of expectation theory, the process of expectation theory, Structural characteristics of behavioral finance .

Name of Lecturer(s)
Learning Outcomes
1.Explains basic assumptions of behavioral finance.
2.Defines cognitive biases that affect investor behavior.
3.Analyzes market anomalies.
4.Evaluates the financial impact of irrational decisions.
5.Compares behavioral models with classical models.
6.Interprets behavioral tendencies through case studies.
Recommended or Required Reading
1.Ekrem TUFAN, Davranışsal Finans, İmaj Yayıncılık
Weekly Detailed Course Contents
Week 1 - Theoretical
Differences and similarities between empirical and behavioral finance (rationality, EMH...)
Week 2 - Theoretical
Basic concepts and theories I (Heuristics, Biases, Loss aversion, Risk perception)
Week 3 - Theoretical
Basic concepts and theories II (Cognitive / Emotional Approaches, Individual / Group Behaviors)
Week 4 - Theoretical
Prospect Theory
Week 5 - Theoretical
Irrational Investor Approaches (Limits of Arbitrage)
Week 6 - Theoretical
Investment and Financial Planning Approaches (Ethic-Based Investing, Portfolio allocation decisions)
Week 7 - Theoretical
Behavioral outlook in terms of company and market efficiency I (Nudging, Financial scandals, corporate social responsibility)
Week 8 - Theoretical
Behavioral outlook in terms of company and market efficiency II (Overreaction - Underreactin, Anomalies, Bubbles)
Week 9 - Theoretical
Behavioral corporate finance ve managerial decision making I (market capitalization related decisions)
Week 10 - Theoretical
Behavioral corporate finance ve managerial decision making I (market capitalization related decisions)
Week 11 - Theoretical
Financial literacy and customer management
Week 12 - Theoretical
Financial literacy and customer management
Week 13 - Theoretical
Behavioral corporate finance ve managerial decision making I (market capitalization related decisions)
Week 14 - Theoretical
Behavioral corporate finance ve managerial decision making I (market capitalization related decisions)
Assessment Methods and Criteria
Type of AssessmentCountPercent
Midterm Examination1%40
Final Examination1%60
Workload Calculation
ActivitiesCountPreparationTimeTotal Work Load (hours)
Lecture - Theory142370
Midterm Examination125126
Final Examination130131
TOTAL WORKLOAD (hours)127
Contribution of Learning Outcomes to Programme Outcomes
PÇ-1
PÇ-2
PÇ-3
PÇ-4
PÇ-5
PÇ-6
PÇ-7
PÇ-8
PÇ-9
PÇ-10
OÇ-1
4
4
3
2
3
2
2
3
2
2
OÇ-2
4
4
3
2
3
2
3
3
2
3
OÇ-3
4
4
4
3
4
3
2
3
2
3
OÇ-4
4
4
4
3
5
3
2
4
2
3
OÇ-5
4
4
4
3
4
3
2
4
2
3
OÇ-6
4
4
4
3
4
3
3
4
2
3
Adnan Menderes University - Information Package / Course Catalogue
2026