Traditionally, corporate investment decisions have assumed that managers are fully-rational, unbiased, unemotional - perfect calculators of risky situations. However in the real world human imperfections and biases frequently adversely influence the financial decisions we make.
This course draws upon the latest cutting-edge thinking in behavioural corporate finance and how an understanding of this can help to improve investment decision-making and maximise profitable returns in the presence of risk and uncertainty. In doing so it abandons the assumption of investor rationality and considers instead how to recognise the tipping point between value-creation and value-destroying projects, how to maximise the returns on capital structure, securities, asset pricing and M and A activity, and how to avoid project entrapment. Behavioural decisions will be analysed from both the individual investor and the finance professionals’ perspectives, and will focus on the practical application of managing assets and investment portfolios for maximum return.