KARNATAK

UNIVERSITY, DHARWAD

Kousali institute of Management

Studies
 KARNATAK
UNIVERSITY, DHARWAD
Kousali institute of Management
Studies

MBA Revised Syllabus

w.e.f. 2018-19 onwards
 COURSE OUTLINE FOR MBA SECOND SEM
Paper Title of the Paper No of IA Sem End Total
Code credits Marks Exam Marks
B1 Production and Operations Management 2 25 25 50
B2 Operations Research 3 25 50 75
B3 Corporate communication-II 2 25 25 50
B4 Financial Management 3 25 50 75
B5 Organisational Behaviour 4 50 50 100
B6 SIP (PROJECT) 4 50 50 100
B7 Business Research & Analytics (OEC)(offered 4 50 50 100
in-house by the department)
TOTAL 22 250 300 550
Specialisation Courses
(Students to choose as many subjects as desired subjects to minimum credits per semester as per Table above)
GENERAL MANAGEMNT : No of IA Sem End Total
credits Marks Exam Marks
B8 Management Information System 2 25 25 50
B9 Micro Small and Medium Enterprise 4 50 50 100
Management
B10 Total Quality Management 3 25 50 75
Total 9 100 125 225
MAR KETING STREAM: No of IA Sem End Total
credits Marks Exam Marks
B11 Integrated Marketing Communication 3 25 50 75
B12 Consumer Behaviour 3 25 50 75
B13 Business Marketing 3 25 50 75
B14 Service Marketing 3 25 50 75
Total 12 100 200 300
FINANCE STREAM: No of IA Sem End Total
credits Marks Exam Marks
B15 Financial Markets & Services 4 50 50 100
B16 Cost and Management Accounting 3 25 50 75
B17 Behavioural Finance 2 25 25 50
B18 Insurance and Risk Management 3 25 50 75

12 125 175 300

Total
HUMAN RESOURCE: No of IA Sem End
credits Marks Exam
B19 Applications of Labour Laws 03 25 50 75
B20 Managerial Effectiveness and leadership 03 25 50 75
B21 Career Planning and Development 03 25 50 75
B22 Performance Management and competency 03 25 50 75
mapping
Total 12 100 200 300

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Title: Production & Operation Management
Subject code: B1 Contact Hours: 30
Work load: 2 Hours per week Credit Points:2

Evaluation: Continuous Internal Assessment - 25

Semester End Examination - 25
Objectives of the course:
To understand a basic concepts and systems view of production and operations management.
To understand the conversion of inputs into outputs process.
To understand functions of production, planning and control and methods to improve productivity

Pedagogy: Lectures, Assignments and Practical Exercise

Module 1: Introduction to Production and Operations Management

Meaning, Role of Production manager, Types of manufacturing process: Meaning, merit and
demerits of job, batch and continuous production. Role of Technology in Production and
Operations Management: Meaning, merits and demerits of automation, N/C machines, CNC
machines, CAD, CAM, FMS and Group Technology.

Module 2: Production, Planning and Control.

Meaning, objectives and functions of PPC, scheduling, Capacity planning: Meaning, types and
measurement of capacity, factors affecting capacity planning, steps involved in capacity planning
and strategy for changing capacity.

Module 3: Facility Location.

Meaning, importance and factors affecting plant location, steps in plant location selection,
location models: factor rating method, point rating method, and Break even analysis.

Module 4: Facility Layouts.

Meaning, objectives and factors influencing facility layout, Classifying of layout: Process layout,
Product layout, fixed layout and combination layout, service facility layout. Layout planning and
design: Layout tools and techniques, templates, models, travel chart, load distance analysis.

Module 5: Productivity
Meaning, factors influencing productivity, productivity improvement techniques: Meaning,
advantages, disadvantages of work study. Steps involved in Method study and Time study.

Text Books:

Production and Operations Management by K. Aswathappa and K. Shridhar Bhat.

Production and Operations Management by Evrette E Adam, Jr. Ronald J. Ebert
Modern Production and Operations Management by Elswood S. Buffa
Reference Books:

Elements of Production Planning and Control by Samuel

Eilion. Work study by ILO

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Title: Operations Research
Subject code: B2 Contact Hours:45
Work load: 3 hours per week Credit Points: 3

Evaluation: Continuous Internal Assessment - 25

Semester End Examination 50
Objectives: The objective of the course is to equip the students with the techniques of data
analysis.
Pedagogy: Lectures, Assignments and Practical Exercises

MODULE 1 : Introduction of OR
Operation Research: Meaning: scope: aid to decision making, Importance of OR techniques in
business and industry
MODULE 2 : Linear Programming
Introduction, Linear Programming Problem, Requirements of LPP, Mathematical Formulation of
LPP, Graphical Methods to Solve Linear Programming Problems, Applications, Advantages,
Limitations, Slack, surplus, Simplex method (Simple examples on change in price)

MODULE 3 : Transportation problems:

Introduction, Formulation of Transportation Problem (TP), initial basic feasible solution by North
West corner rule, matrix maxima method, Vogel approximation method, degeneracy, MODI
method, Moving Towards Optimality
Assignment problems: Initial solution, optimal solution,Hungerian method, Maximization
problem as assignment problem, Routing Problem, Travelling Salesman Problem.

MODULE 4 :Project Scheduling and PERT , CPM

Introduction, Basic Difference between PERT and CPM, Network Components and Precedence
Relationship, Rules for drawing the network diagram construction, Application of CPM and
PERT techniques in project planning and control. Crashing of Project Duration.

MODULE 5 : Game Theory

Introduction, Competitive Situations, Characteristics of Competitive Games, Maximin – Minimax
Principle, Two-person zero-sum game; pure and mixed strategy games, saddle point.

Reference Books
Gupta Prem Kumar and Hira Das (1999). Op. Cit, Chap. 3 & 4, pp. 148-241.
Shenoy G.V. etal(1999). op. Cit, Chap. 2, pp. 70-109.
Taha, H.A.(1999). O.P. Chap 5, pp 165-213.
Gupta P and Hira. D.S (2003). Op. Cit, pp 709-753.
Srivastava, U.K.etal (1997). Op. Cit, Chap-20, pp. 695-720.
Gupta Premkumar and Hira, D.S. (2003). Operations Research, New Delhi: S.Chand& Co. Ltd.,
Chap 1, pp 1-40
Marketing Research- Naresh K Malhotrs- 5th Edition, Pearson Education /PHI 2007
Business Research Methodology – J K Sachdeva – 2nd Edition - HPH, 2011

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Title: Corporate Communication-II
Subject code: B3 Contact Hours:30
Work load: 2 hours per week Credit Points:2
Evaluation: Continuous Internal Assessment - 25
Semester End Examination - 25

Objective of course: The objective of the course is to help the students to acquire the basics of
interpersonal communication, corporate communication and soft skills, so as to improve their
communication skills and ability to understand others along with the personality development as
per the requirement of the corporate world. Practical activities in this subject will help the students
to use communication skill as a strategic asset to build their managerial career.

Pedagogical Tools: Lecture, Seminar, Case Studies, Simulation based Games, Team exercise

Module 1:
Written communication – importance, types of written communication in organization (memos,
circular, office order, notice etc), principles effective of business letter writing, types of business
letters, e-mail writing, writing reports, business proposals and business plans

Module 2:
Technology enabled communication – different forms of technology used in corporate
communication Business etiquettes (give the exposure to students) Netiquettes

Module 3: Communication Lab

(Students are required to submit journals and practical exam will be conducted for the students. )
Writing of different types of business letters (cover all types of business letters) E-mail writing
and analysis, Writing of business plans / business proposals, Writing business reports, Conducting
mock press conference, Preparation of CV and Video Resume, Mock interview – Telephonic,
Skype Interview, Video Conference, Netiquettes, English language exercises- grammar, sentence
framing, Exercise on understanding Non verbal cues & cross cultural communication
barriers(analysis or preparation of video)
Preparation of PowerPoint presentation (guidelines for PPT Preparation, insertion of table, graphs,
pictures, hyperlink etc…) Presentations (using technology and without technology) Conducting
mock business meeting

Reference books:
Business communication by P.D.Chaturvedi, Pearson Publication
Basic Business Communication’ 10th Edition by Lesikar & Flatley TMH Publication. ‘Business
Communication’ 3rd Edition by Mary Ellen Guffey Thomson Publication.
‘Foundation of the Business Communication’ by Dona. J. young-Tata McGraw Hill TMH
Publication.
‘Business Communication’ by Meenakshi, Raman Prakash Singh.
Business communication by Urmila Rai, Himalaya Publishing house Business communication by
Shalini Verma, Vikas Publishing House

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Title: Financial Management
Subject code: B4 Contact Hours: 45
Work load:3 hours per week Credit Points:3

Evaluation: Continuous Internal Assessment - 25

Semester End Examination - 50
Objective: The course is designed to provide an understanding of the essential elements of
financial management and the financial environment in which the business firm operates. The
paper will examine the objective of shareholder wealth maximization which encompasses much of
modern corporate finance and its implication for decision making in the present context. This
paper aims at familiarizing the participants with the skills related to basic principles, tools and
techniques of financial management.
Pedagogy : Lectures, Assignments/Project, Practical Exercises, Case Analysis and Seminars

Module 1: Financial Management:

Introduction to Financial Management – Goals and Objectives of Financial Management - Finance
Functions - Interface between Finance and Other Business Functions. Introduction to Time Value
of Money.

Module 2: Financial Planning:

Introduction to Financial Planning – Objectives – Benefits – Guidelines - Steps in Financial
Planning - Factors Affecting Financial Planning - Estimation of Financial Requirements of a Firm
– Capitalisation.

Module 3: Cost of Capital:

Introduction of Cost of Capital – Significance - Cost of Different Sources of Finance – Estimation
of Weighted Average Cost of Capital.
Module 4: Capital Structure Decisions:
Introduction to Capital Structure - Leverage - Operating Leverage - Financial Leverage -
Combined Leverage – Operating and Financial Risks - Features of an Ideal Capital Structure -
Factors Affecting Capital Structure - Theories of Capital Structure ( NI, NOI, MM & Traditional
Approaches).

Module 5: Capital Budgeting Decisions:

Introduction to Investment Decisions - Importance and Complexities involved in Capital
Budgeting Decisions - Phases of Capital Expenditure Decisions - Identification of Investment
Opportunities - Capital Budgeting Process - Investment Evaluation Criteria (Both Discounted &
Non-discounted Techniques). Introduction to Risk Analysis in Capital Budgeting.

Module 6: Working Capital Management:

Introduction - Objectives – Need – Types of WC - Operating Cycle & its estimation -
Determinants of Working Capital - Approaches for Working Capital Management - Estimation of
Working Capital - Introduction to Cash, Receivables and Inventory Management.

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 Module 7: Profit Appropriation Decisions:
Introduction – Significance – Factors affecting Dividend Decisions - Stability of Dividends -
Forms of Dividends – Theories of Dividend - Buy Back of Shares.

Text Book:
‘Financial Management’ by M Y Khan & P K Jain, Tata McGraw Hill Publication, New
Delhi.
Reference Books:
Financial Management by I.M.Pandey, Vikas Publishing House, New Delhi..
Financial Management: Theory and Practice by Prasanna Chandra, Tata McGraw Hill
Publication, New Delhi.
Financial Management: Problems & Solutions by Ravi M Kishore, Taxmann Allied
Services Publication, New Delhi.
Cases in Financial Management by I M Pandey and Ramesh Bhat, Tata McGraw Hill
Publication, New Delhi.

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Title: Organizational Behaviour
Subject code: B5 Contact Hours: 60
Work load: 4 Hours per week Credit Points:4

Evaluation: Continuous Internal Assessment - 50

Semester End Examination - 50
Objectives: The course aims at enhancing the understanding of dynamics of interaction between
individual and organisation.
Pedagogy: Lectures, Assignments and Practical Exercises

Module 1: Introduction,
Definition, Historical Development, Challenges and Opportunities for OB and outcomes.

Module 2:
Diversity, Abilities, Attitudes and Job Satisfaction, Emotion and Moods, Personality and Value,
Perception and Individual Decision- Making.

Module 3:
Motivation Concepts: Definition, Early Theories of Motivation Contemporary Theories of
Motivation. Motivation: From Concepts and Applications.

Module 4:
Group Behavior: Definition and Classifying Groups, Stages of Group Development, Group
Properties and Group Decision Making. Teams: Difference between Group and Teams Types of
Teams, Creating Effective Teams, Successful Teams, Team Composition, Team Processes,
Turning Individuals into team Players etc. Power and Politics; Definition of Power, Politics,
Power in action, the reality of politics causes and consequences of Political Behaviour, etc.
Conflict and Negotiation: Definition, Transitions in Conflict Thought, the conflict process.
Negotiation: Definition, Bargaining strategies, the Negotiation Process, etc.

Module 5:
Organization Culture; Organizational Change and Stress Management.

Reference Books:
Organizational Behaviour – Stephen P Robbins, Timothy A Judge, Neharika Vohra –
Fifteenth Ed – Pearson, New deldi 2014.
Organizational Behaviour – Fred Luthans – Twelth Ed- Mc Graw Hill, Singapore –
2011. Organizational Behaviour-K.Ashwatappa, Himalaya Publication

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Title: Summer Inplant Project [SIP]
Subject Code: B06 [4 credits]

Workload: 60 days on site of organization & institute for guidance

Evaluation: Project Report – 50 marks

Project Viva -- 50 marks

Preamble:The Summer Implant Project (SIP) is a fully practical oriented course which has been
designed to give students indepth knowledge about industry/ business. Summer Implant Training
(SIT) is designed at the end of first year, where in student would have studied the foundation courses
in management and will have more scope to apply knowledge. In this subject, wherein he will be
encouraged to explore concepts already dealt in the class and understand its application in the field.
The student while carrying summer implant training Project is more focused and would be getting
continuous guidance from the external as well as internal experts. The following note presents the
broad guidelines of the Project.

PROCESS / GUIDELINES:

1) Each student will select an organization of his/ her choice and a project in his/her area
of interest. Or institute will depute the students to various organizations looking at their
area of interest.
2) In case the student makes the choice of the organization, it has to be made in
consultation with the Institute. The Institute for this purpose should assign an internal
faculty member who will act as the mentor throughout the Project. The assignment of
mentor and choice of organization should be made on or before the II semester exams.
3) The study conducted by the student will be a full time effort where he/she is required
to attend the Industry or business everyday for all seven days in a week or as per
industry/ organization’s rule. The industry expert will act as the External guide and the
student is required to submit attendance details every week to the institute.
4) The proposal for the Summer Project or title of the project should be submitted to the
Institute, which will ensure the registration of students for Project. Students should
prepare these proposals in consultation with the Internal and External Guide.
5) Students should send Joining Report on the first day of the joining which should be
duly signed by the external guide.
6) Student should also send weekly report/s every week keeping posted about the work –
in – progress with regard to project to the institute. Each student should send 8 weekly
reports without fail.
7) The format for the proposal or deciding about project title is as given below:
Title of the study
Need for the study (Stress on Need for study-current trends in the area)
A review of earlier research studies conducted
Objectives of the study
Methodology
Proposed outcomes and benefits of the study
8) There will be eight weeks for the completion of the concerned proposal. Late
submissions should not be entertained by the Institute in any case. A soft copy on a CD
of all reports is to be sent to Chairman BOE, KIMS, KUD immediately after the
submission date.
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 9) There shall be 2 copies of project reports along with a CD to be submitted by each
student to the institute.
10) Separate presentations for the organizations and the Institute have to be arranged
before completion of the project or as per convenience.
11) There will be a project viva-voce conducted by Karnatak University, soon after the
theory examinations. The panel of examiners will be similar to SIP.
Deliverables:

The students are required to deliver the following Deliverables without any concessions as per the
dates mentioned in the above process.
1) Joining Report and deciding project title/ proposal
2) Submission of project report (Soft copy (CD)+ Hard copy- 2no.s /Project)
3) Presentation (for organization and the Institute)
4) Presentation for Viva-voce examination to be conducted by KUD.
5) Student to present 1 copy to the organization and get the Certificate.

Format for Project Reports

The format for the Major Concurrent Project reports should be in the following manner.

Executive Summary
Introduction of the study
About the organization – Brief
Objectives
Analysis and Findings
Discussion
Conclusion
References

In certain cases, students may change the format in consultation with his mentor and the
External Guide. Enough care should be taken that the Project report focuses the study undertaken
by the student and its findings. The report should contain minimum 75 pages with the following
styles:

i) A-4 size paper (Executive Bond)

ii) MS Word style with Times New Roman Font
iii) Font size -12 for Text and 14 for headings
iv) Paper settings with 1 inch margins on all the four sides.

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Title: Consumer Behaviour
Subject code: B12 Contact Hours: 45
Work load:3 hours per week Credit Points:3

Evaluation: Continuous Internal Assessment - 25

Semester End Examination - 50
Objective: To make students to learn concepts, theories, principles, functions and objectives of
Consumer Behavior.
Pedagogy: Lectures, Assignments, Projects, Practical Exercises and Seminars, Case Discussion.

Module I: Consumer Behavior and Marketing strategy:

An Introduction: Applications of Consumer behavior, market analysis components, market
segmentation, marketing strategy, consumer decisions, nature of consumer behavior, Models Of
Consumer Behavior and Decision Making.

Module II: External Influences:

Cross-Cultural variations in Consumer Behavior: concept of culture, variations in cultural values,
cultural variations in non-verbal communications, global cultures, global demographics, cross-
cultural marketing strategy. The changing society; changes in cultural values, marketing strategy
and values, Demographics and social stratification; understanding demographics, generations,
social stratification, social structure, measurement of social class, social stratification and
marketing strategy, Subcultures; nature of subcultures, religious subcultures, regional subcultures,
Ethnic subcultures etc., Families and households; Nature of households, the household life cycle,
marketing strategy and household life cycle, family decision making, marketing strategy and
family decision making, consumer socialization, marketing to children. Group influences on
consumer behavior; types of groups, reference groups influences and marketing strategy,
communication within groups, and opinion leadership, diffusion of innovations.

Module III: Internal Influences:

Consumer Perceptions; nature, of perception, Exposure, Attention, Interpretation, perception and
marketing strategy, Consumer Personality; use of personality in marketing practices, emotions and
marketing strategy, Consumer Attitude: attitude components, attitude change strategies, individual
and situational characteristics that influence attitude change, communication characteristics that
influence attitude formation and change. Market segmentation and product development
strategies, based on attitudes, Self concept and lifestyle; nature of lifestyle, the VaLs system, Geo-
lifestyle analysis, international lifestyles, Consumer Motivation: nature of motivation, motivation
theory and marketing strategy, Consumer Learning And Memory and product positioning; nature
of learning and memory, memory’s role in learning, learning under high and low involvement,
learning, memory, and retrieval, brand image and positioning, brand equity, and brand leverage.

Module IV: Decision Making Process:

Situational Influences; the nature of situational influence, situational characteristics and
consumption behavior, ritual situations, situational influences and marketing strategies, Consumer
decision process and problem recognition; types of consumer decisions, the process of problem
recognition, uncontrollable determinants of problem recognition, marketing strategy and problem
recognition. Information search; nature of information search, types of information sough, sources
of information, amount of external information search, costs Vs. benefits of external search
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marketing strategies based on information search pattern. Alternative evaluation and selection;
How consumers makes choices? Evaluative criteria, individual judgment and evaluative criteria,
decision rules for attribute-based choices, outlet selection and purchase; outlet choice Vs. Product
choice, the retail scene, attributes affecting retail outlet selection, consumer characteristics and
outlet choice, In-store and online influences on brand choices, purchase, Post-purchase processes,
customer satisfaction, and customer commitment; post purchase dissonance, product use and
nonuse, disposition, purchase evaluation and customer satisfaction, dissatisfaction response,
customer satisfaction and repeat purchases, and customer commitment.

Module V: Organization as consumer:

Organizational buyer behavior; organizational purchase process, organizational culture, factors
influencing organizational culture. Market Segmentation and Consumer Behavior. Relationship
Marketing and Consumer Behavior. Consumerism And Consumer Movements- A historical
Perspective: Marketing regulation and consumer behavior, regulation and marketing to children,
marketing to adults.

Text Books:

Del I Hawkins, David L Motherbaugh and Amit Mookerjee, “Consumer Behavour –

Building Marketing Strategy”, McGrawHill Publications.
Leon G Schiffman, Joseph Wisenblit and S Ramesh Kumar “Consumer Behaviour”,
Pearson Publications.

References:

Soloman and Soloman, “Consumer Behavour” Pearson publications, latest edition

Ramneek Kapoor and Nnamdi O. Madichie, Consumer Behaviour, McGrawHill
Publications
Satish K Batra and S H H Kazmi, “Consumer Bhevaiour – Text and Cases”, Excel
Publications.

33
Title: Cost and Management Accounting
Subject code: B16 Contact Hours: 45
Work load: 3 hours per week Credit Points:3

Evaluation: Continuous Internal Assessment - 25

Semester End Examination - 50
Objectives: To acquaint the students with cost and management accounting mechanics, process &
system and their managerial implications; To familiarise them with cost records / statements and
To develop an appreciation about the utility of cost information as a vital input for management
information and decision making process.
Pedagogy : Lectures, Assignments/Project, Practical Exercises and Case Analysis

Module 1: Introduction to Cost and Management Accounting

Cost Accounting - meaning, objectives , scope and importance, concepts of costs, classification
and elements of cost, cost centre and cost unit, methods and techniques of costing, role of
accountant in decision making. Meaning, objectives and Scope of Management Accounting, Tools
and Techniques of Management Accounting, Relationship with different branches of accounting,
role of management accountant in decision making.

Module 2: Material Cost, Control and Techniques of Inventory Management

Meaning of Material cost, types of materials, purpose for holding material, material control.
Procurement procedure and documentation. Inventory Management techniques of fixing stock
levels, EOQ, ABC analysis. Treatment of waste, scrap, discarded inventories.

Module 4: Activity Based Costing (ABC)

Meaning, Importance, Characteristics, Elements and Steps involved in ABC, ABC vs. Traditional
Costing , Uses and Limitations.

Module 5: Costing System & Methods

Costing Systems l Unit and Output Costing l Job Costing: Job Cost Cards, Collecting Direct &
Indirect Costs, Allocation of Overheads and its Applications. Contact Costing: Features (Theory),
Distinction between Job and Contact Costing. Process Costing: Features, Applications. Service
Costing: Features and Applications (Transport).

Module 6: Budgeting and Budgetary Control

Meaning, objectives and scope of budgeting - Forecast and budget – Types of budgets – Cash
budget, flexible budget (examples), Zero base budget - Budgetary control.

Module 7: Standard Costing & Variance Analysis

Definition, Significance and Applications - Various Types of Standards. Variance Analysis for
Materials, Labour and Overheads - Benchmarking for Setting of Standards - Variance Reporting
to Management
Module 8: Marginal costing and cost volume profit Analysis: Meaning, objectives & scope of
marginal costing - Techniques of marginal costing (including profit-volume ratio, contribution,
Break Even Point, Margin of safety) – Application of Marginal Costing

39
Module 9: Analysis and Interpretation of Financial Statements
Corporate Accounting – Features - Form and Contents of Financial Statements and Interfaces with
Companies Act - Analysing and Interpreting Financial Statements – Statement of Changes in
financial Position (Funds Flow and Cash Flow Analysis – AS 3 ) Difference between Cash Flow
and Fund Flow Statement. Recent Trends in Management Accounting

Module 10: Management Reporting and Information Systems

Meaning, objectives and scope of Management reporting - Nature and types of Management
reporting - Management Information system – Meaning, Objectives and scope - Role of MIS.

Reference Books:
Cost Accounting – Theory and Practice by K S Thakur – Excel Books Publication
Costing Accounting – Principles and Practice – Nigam and Jain – PHI
Cost Accounting – Jawahar Lal & Srivastava – Tata McGraw Hill Publication
Cost & Management Accounting – M N Arora – Himalaya Publication
Executive Program Cost and Management Accounting – ICSI Study Material
Cost and Management Accounting - S.N.Maheshwari, Sultan Chand & Sons, New Delhi

40
Title: Behavioural Finance
Subject code: B17 Contact Hours: 30
Work load: 2 hours per week Credit Points: 2

Evaluation: Continuous Internal Assessment - 25

Semester End Examination - 25
Pedagogy : Lectures, Assignments/Project, Seminars and Case Analysis

Module 1: Conventional Finance / Standard Finance

Foundations of Conventional Finance - Modern Portfolio Theory - Capital Asset Pricing Model -
The Random Walk Hypothesis - Expected Utility Theory (EUT) - Efficient Market Hypothesis
(EMH) - Criticisms of EMH - Revolutions that led to the Behavioural Finance.
Module 2: Behaviour and Decision Making
Introduction - Foundations of Behaviour – Cognition - Cognitive Bias - Behavioural Models -
Theory of Planned Behaviour - Hierarchical Model
Introduction to Behavioural Finance - Assumptions of Behavioural Finance - Building Blocks of
Behavioural Finance.

Module 3: Theories of Behavioural Finance

Introduction – Heuristics - Representativeness Heuristic - Availability Heuristic Biases -
Emotional Bias – Over Confidence- Anchoring - Outcomes of Biases - Dealing with Biases -
Overcoming the Biases
Prospect Theory - Framing - Loss Aversion - Regret Aversion - Mental Accounting - Uses of
Behavioural Finance
Module 4: Market Bubbles
Introduction – CASE: The Mississippi Bubble - CASE: The South Sea Bubble- CASE: Stock
Market Bubbles in the Recent History - CASE: Stock Market Crash of 1929 - CASE: The Crash
of 1987 –
CASE: The Dotcom/ Internet Bubble- CASE: The Housing Bubble
Identification of a Stock Market Bubble- Behavioural Finance Explanation of Bubbles- Investor
Behaviour During Bubbles - Causes of Bubbles – CASE: Tulip Mania - CASE: HFCL— The
Indian ICT Bubble.
NOTE: Module 4 is consisting of all the relevant cases from the text book (Behavioural Finance -
SULPHIY)

Text Books:
Behavioural Finance – Sulphey, MM, Prentice Hall of India, 2014
Behavioural Finance – Shuchita Singh & Shilpa Bahl, Vikas Publishing House (P) Ltd
Reference Books:
Behavioural Finance & Wealth Management – Michael Pompian, John Wiley Publishing
Understanding Behavioural Finance - Lucy Ackert and Davies, Cengage India, 2011
rd
Security Analysis and Portfolio Management – Prasanna Chandra, Tata McGraw Hill, 3 Edition,
New Delhi, Third Reprint 2012
Value Investing and Behavioral Finance – Parag Parikh, Tata McGraw Hill, New Delhi, Third
Reprint 2012

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