The impact of online learning tools on student success in college of business core finance classes

Abstract

The authors examine the impact of a new online learning system on student performance in a core finance course required of all business majors. They find that the online learning system significantly reduces the number of students that withdraw from the course prior to course completion. Additionally, the benefits of a lower withdrawal rate transcend all modalities of course delivery and are greatest for students with declared majors outside of finance. Finally, though use of the online learning system reduces the withdrawal rate of students, it does not appear to result in significant grade inflation among those students completing the course.

Keywords:

• Finance
• online
• withdrawal rates

Notes

1 Baker-Eveleth, Miller, and Tucker (2011) provided a nice summary of the challenges associated with implementing a custom textbook in business courses.

2 The RJ System was piloted in one section of FIN 380 in spring 2017, and fully adopted in all sections beginning fall 2017.

3 Finance majors are required to earn a grade of B- or higher to continue in the major, thus they have greater motivation than other business majors.

4 ACT scores are reported on a scale of 0–36. The scores are squared because of the nonlinear nature of ACT scores. For example, movement from 20 to 21 is a less meaningful change, as is movement from 30 to 31.

5 Subgroup regressions by modality produce qualitatively similar results and are excluded for brevity.