MGMT-6250

Financial Theory and Its Links to Behavioral Sciences

This course addresses the behavioral sciences background of modern finance theory; the inclusion of risk and future uncertainty in general economic equilibrium; efficient markets; investor utility, objectives, and behavior; rational expectations and prospect theory; asset pricing in the context of general economic equilibrium; transaction costs, markets and institutions; information asymmetry and agency theory; capital structure and corporate finance. Other topics will be selected from corporate governance; futures and options; international exchange and risk management. The topics dealt with in depth will vary as the content responds to important issues in the field. Prerequisites: doctoral student standing or permission of the instructor. Spring term.

3 credit hours