Introduction
· Introduction and overview
· Definition
· Characteristics
· Types
Efficient market hypothesis
· steps of efficient market hypothesis
· Empirical tests
· Forms of EMH
Failing EMH.
· Theoretical challenges
· Empirical challenges
· Insider information and corporate scandals
· Return predictability in the stock markets
· Common risk factors
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· Stock prices overreaction and correction
Behavioral economics and finance
· prospect theory
· asset pricing
Heuristics and behavioral biases of investors
· Anchoring bias
· Familiarity bias
Heuristics and behavioral biases of investors
· Risk preference, framing bias
· Mental accounting
· Ambiguity aversion
· Overconfidence and excessive trading
· Analysis of potential consequences
Behavioral corporate finance.
· Decision-making process in reality
· Rational managers
· Less than rational managers
Behavioral corporate finance.
· Behavioral biases of managers
· Capital structure choice
· Investment policy
Demonstrating behavioral biases in action
· Empirical evidence