Ár1. ár
ÖnnVorönn/Spring 2020
Stig námskeiðsÓskilgreint
Tegund námskeiðsValnámskeið
UndanfararV-107-FJAR, Fjármál fyrirtækja
SkipulagEkkert skráð skipulag.
Már Wolfgang Mixa
This course describes how individuals and firms make financial decisions, and how those decisions might deviate from those predicted by traditional financial or economic theory. Using theories of human behavior from the fields of psychology, sociology and other fields of sciences related to decision-making, common features of irrational behavior in the financial markets will be described and analyzed. 
The goal is to learn and understand the most common concepts related to behavioral finance (ever more frequently referred to as behavioral economics, as choices are not limited to finance in its purist sense).  That creates a groundwork in understanding the history and difference between efficient markets hypotheses (EHM) versus more cognitive sciences related to decision making processes, how sociological developments influence such patterns, sometimes creating difficulties for professionals making rational decisions/choices and eventually in some cases creating bubbles. This will be analyzed particularly in regards to the recent banking crisis in Iceland (both domestically and also in relation to international developments). This course will compare Iceland to the Scandinavian banking crisis in the 1990s and the build-up of the stock bubble in the USA during the 1920s and the resulting stock market crash in 1929.  This involves sociological analysis with a discussion of cultural economics (or cultural finance) and how the banking arena may influence the general public and vice-versa.
Being to be able to detect sociological effects and the re-enforcing trends they cause individuals to alter their financial behavior. As such, special attention will be on how such behavior can cause rational individuals to participate in creating bubbles and thus experiencing financial man-made crashes. 
All this involves gaining an understanding of financial history. This is not, however, a “soft” course; it is necessary to apply financial knowledge to the material. Students should gain an increased understanding of how returns are determined under different circumstances and how to avoid pitfalls better “than the rest of the crowed” when increasing returns or making “safe bets.”
Students should be able to detect the effects of psychological behavior in financial decision making on a daily basis, how such behavior may influence society at large (or vice versa) and thus gain tools in avoiding being caught in the middle of future storms of financial crashes. By being aware of signs of financial euphoria and the opposite, that is irrational pessimism in markets, students can better evaluate investment decisions, not only concerning direct investments in financial instruments but also in relation to various aspects of economic decisions from a wide stand-point.

Ekkert skráð lesefni.