Understand the psychology behind the financial decisions you and others are making
This program is eligible for 12 CE credit hours as granted by CFA Society VBA Netherlands
Behavioral finance tools are being developed in order to understand behavior, and to apply this understanding to investment and financial decisions. The two-day Behavioral Finance program is designed to provide the participants with strategic insights and operational tools needed to succeed in the more sophisticated and demanding competitive marketplace.
Behavioral biases and their impact on financial behavior, decision making, and performance will be examined during this program. The goal is to make participants aware of the different biases and to quantify their relevance in the decision making process. We will develop a framework that helps you to think critically and to lay out how to move forward and cope with these new challenges, turning them into opportunities and sources of competitive advantage.
How you will benefit
- Gain an understanding of the major behavioral biases and see their impact on financial behavior, decision making and performance
- Learn how to apply behavioral finance tools to investment and financial decisions
- Discover links between investor biases and portfolio choice
- Learn how the biases can be used to develop trading strategies that beat the market
- Learn about potential pitfalls of traditional valuation frameworks
- Understand how bank managers, corporate and private customers, and institutions think
- Develop a framework that leads managerial decisions both at the individual and team level, resulting in a high performance team
- Major behavioral biases and their impact on financial behavior, decision making and performance
- Awareness of the different biases and how to quantify their relevance in the decision process
- Foundations to understanding how bank managers, corporate and private customers as well as institutions think
Investor biases and portfolio choice
- How can biases be used to develop trading strategies that beat the market
- Overall strategies
- Event-driven strategies
- Link between fundamental analysis and behavioral finance
Valuation around corporate events
- M&As, IPOs, SEOs, share buybacks, dividends
- Complexities and potential pitfalls of traditional fundamentals-based valuation frameworks
- How does behavioral finance help to ameliorate strategies based on earnings manipulation, cash flow smoothing, and further biases and manipulation in analyst recommendations and forecasts
Behavioral biases and liquidity
- Asset prices and returns
- Role of sentiment (the “mood” of the market, leading to potential over- or undervaluation)
- New providers of data (such as news analytics): how to distinguish sentiment-based effects from those driven by fundamentals
- Applying recent models of international valuation and momentum-based approaches
Understanding the customer
- Private customers and corporate customers
- What are the biases they suffer
- How can the new bank provide value to them along two dimensions:
a) helping them to take debiased decisions,
b) offering new “high-added value” services
- How to address the client behavioral biases in a way that maximizes customer satisfaction and portfolio wealth
- How can the new bank use these biases as a source of competitive advantage, for example, in the case of the trusted advisor, to better exploit the “constraint” of best advice suggested by the regulator
- Link between value creation for the customer and value creation for the bank
High performance teamwork
- Behavioral factors conducive to high performance teamwork within a relationship manager team
- Framework for High Performing Teams
Who should attend
This program will benefit all professionals interested in learning how behavioral finance impacts, or can improve, their decision making and that of others. These professionals may include CEOs, CFOs, asset managers, private and investment bankers, recovery and restructuring managers, bankers and managers in general, and financial planners.
Massimo Massa is the Rothschild Chaired Professor of Banking and a Professor of Finance at INSEAD. He has an MBA from the Yale School of Management and an MA and a PhD in Financial Economics from Yale University. He is a CPA and an Auditor and has previously worked in the Bank of Italy.
Professor Massa’s research interests include asset management, corporate finance, behavioral finance, and financial intermediation.
Dates & fees
25 - 26 June 2018
Program fee includes all study materials, books and software that are required for the program as well as daily luncheons.>
Program fee is exempt from VAT for clients located in the Netherlands. For other EU and Non-EU clients, VAT may be due by client and will not be charged by AIF. Fees may be subject to change.
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