Certificate in Financial Management

Certificate in Financial Management Courses

CalSouthern’s Certificate in Financial Management is an 18-credit program, comprised of the following six required courses:

FIN 87518 Behavioral Corporate Finance

Credits : 3

The Behavioral Corporate Finance course explains how psychology impacts the decisions and judgments of corporate managers regarding valuation, capital budgeting, real options, capital structure, payouts, corporate governance, and mergers and acquisitions. The main psychological phenomena are heuristics and biases, framing effects, and affect. Behavioral Corporate Finance identifies the key psychological obstacles to value maximizing behavior, along with steps that managers can take to mitigate the effects of these obstacles. The main goal of the course is to help students learn how to put the traditional tools of corporate finance to their best use, and mitigate the effects of psychological obstacles that reduce value.

Learning Outcomes:
  • Identify a number of behavioral factors that systematically influence financial markets.
  • Distinguish between the remedies appropriate to agency conflicts and the remedies appropriate to behavioral biases.
  • Analyze how representativeness leads managers, investors, and market strategists to form biases judgments about the market risk premium.
  • Describe heuristics that mangers use to set the dividend policies of their firms.
  • Identify the properties and characteristics of empirical data pointing to the presence of behavioral phenomena.
  • Explain why groupthink, poor information sharing, and inadequate motivation underlie suboptimal group decision when engaged in judgmental tasks.
  • Be able to use single-handedly or provide advice and consultation to corporate executives with regards to behavioral factors and their possible influence onto company operations, reporting, etc.
  • Use the press coverage measure and long holder measure to identify executives who are prone to engage in acquisitions.
  • Be able to identify, locate and use the literature from both periodic sources and publications on the internet to aid in identifying the behavioral phenomena and finding suggested explanations and mechanisms for such phenomena in financial markets and corporate finance.
  • Evaluate course concepts critically and competently through interaction with Learners and Faculty Mentor.

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