This course analyzes corporate finance topics through a behavioral perspective a strand of research focusing on how managers and firms make financial decisions and how these choices might deviate from those predicted by traditional financial theory. Compared to traditional finance which assumes managers are rational and always make optimal decisions behavioral finance states that individuals are in fact inclined to make psychological and cognitive mistakes. Since corporate managers usually make decisions involving millions of dollars their behaviors have a direct impact on corporate results; therefore behavioral finance is likely to be even more important to corporate finance than it is to investments and financial markets. For example behavioral phenomena can cause managers to take actions that are detrimental to the interests of shareholders; simply identifying behavioral biases at the right time managers could save their firms from potential financial disaster. Applying psychological and behavioral evidence to corporate finance and financial markets students can therefore learn how managers can avoid these biases in order to make decisions that are more rational.