Abstract
Using an ordered probit model, we examine the determinants of student performance in an introductory, junior level financial management course at a rural state university in the eastern United States. It is discovered that the cumulative grade point average and academic major of a student are marginally significant predictors of that student’s final letter grade in the course. There is a much more significant positive relationship between grades received in two prerequisite mathematics courses and the grade in the introductory finance course. The letter grade received in the prerequisite microeconomics course reveals the phenomenon of persistence in that the probability of obtaining a good grade in the finance course is greater if the student received an A or B in the microeconomics course. Final grades earned in prerequisite accounting courses also influence final grades in the introductory finance class. It is also determined that students who are required to take remedial mathematics are at a disadvantage when taking the introductory finance course.
Recommended Citation
(2012)
"Are Mathematics, Economics, and Accounting Courses Important Determinants in Financial Management: A Rank Order Approach,"
Journal of Economics and Finance Education: Vol. 11:
Iss.
1, Article 6.
Available at:
https://scholarship.rollins.edu/jefe/vol11/iss1/6
