Behavioural Science MSc
Behavioural Finance ACCFIN5043
- Academic Session: 2026-27
- School: Adam Smith Business School
- Credits: 15
- Level: Level 5 (SCQF level 11)
- Typically Offered: Semester 2
- Available to Visiting Students: No
- Collaborative Online International Learning: No
- Curriculum For Life: No
Short Description
This course examines how psychological factors influence financial decision‑making and challenge traditional models of rational choice and market efficiency. It covers key behavioural theories and their applications to financial markets, corporate behaviour, and investment decisions. Students critically evaluate academic research and empirical evidence to develop behaviourally informed financial judgement in academic and professional contexts.
Timetable
8 x 2 hour lectures
2 x 1 hour tutorials
Excluded Courses
None
Co-requisites
None
Assessment
1. Written assignment, including essay; Individual; 1,600 words; 40%; ILOs 3-4.
2. Degree exam: on campus; Individual; 90 minutes; 60%; ILOs 1-3.
Main Assessment In: April/May
Course Aims
The aims of this course are:
■ To develop students' advanced understanding of behavioural theories of financial decision making and to enable critical evaluation of standard financial models, including expected utility and market efficiency, in light of behavioural finance research.
■ To enable students to apply behavioural finance concepts and empirical evidence to the analysis of financial markets, corporate behaviour, and investment decisions, synthesising data and theory to evaluate financial solutions.
■ To develop students' capacity for critical judgement, reflective practice, and effective communication when making and justifying behavioural finance informed decisions in academic and professional contexts.
Intended Learning Outcomes of Course
By the end of this course, students should be able to:
1. Critically evaluate normative and descriptive models of decision making and assess their implications for individual and market level financial behaviour.
2. Analyse and evaluate the role of heuristics, biases, and other behavioural concepts in shaping financial decision making, and critically appraise their consequences for market efficiency, asset pricing anomalies, and stock market puzzles.
3. Apply and synthesise behavioural finance concepts and empirical financial data to evaluate financial decisions and solutions in contexts such as behavioural corporate finance and behavioural investing.
4. Communicate behaviourally informed financial analyses clearly to relevant stakeholders and critically reflect on personal decision-making performance.