An Exploratory Study on Cognitive Skills and Topics Focused in Learning Objectives of Finance Modules: A UK Perspective

Abstract

Finance is an important subject in many undergraduate programmes. In the UK, the technical competencies in this area are covered by the QAA benchmark in finance (2007). However, the benchmark does not rigidly circumscribe the curriculum and expected competencies. As a result, universities are free to teach the subject from a variety of perspectives. In this paper, the subject-specific knowledge and skills emphasised in core finance subjects in accounting undergraduate programmes in the UK are explored. Learning outcomes from module handbooks/unit specifications from 10 UK universities are used to analyse the taught topic areas and the cognitive skills that are developed and tested. The results indicate that the topic areas of funding/sources of finance feature highly in the finance curriculum. However, while cognitive skills should stress the demands of the rapidly changing business environment, this was undetected, and a number of topics and related cognitive skills were found to be under-developed in the programmes reviewed. The study examines an under-researched area and offers some insights into what is considered important in the finance curriculum in the UK.

Keywords:

• Finance education
• accounting
• learning outcomes
• cognitive skills
• UK universities
• empirical research

Notes

The term ‘module’ refers to a discrete subject within a programme of study. The term is synonymous with ‘class’ and ‘course’.

In doing so, the author recognises that learning has three outcomes: intended change in knowledge, skills, and attitudes. The focus of this study is the knowledge component.

In 1992, the UK Government awarded approximately 50 polytechnics with university status. These ‘new’ universities were largely vocationally focused. As a result, the number of universities in the UK effectively doubled.

In the UK, entry to university is normally dependent upon points relating to the final high school examinations, typically ‘A-Level’ examinations in most of the UK, and ‘Higher’ examinations in Scotland.

Bloom's taxonomy is used for a variety of purposes, including classifying curricular objectives and testing items in order to show the breadth. The taxonomy, original and revised, measures three domains in educational learning: cognitive (relating to the subject), affective (relating to values), and psychomotor (relating to imitation of skills), and is widely employed in the UK for the construction of learning outcomes (UKCLE, 2010) within the university sector. Kratchwohl (2002) states that learning outcomes help in ‘classify(ing) curricular objectives and test(ing) items in order to show the breadth [of knowledge]’ (p. 213). The taxonomy is also popular in finance case study construction (Gitman, Lewis and Yates, 1987) and in the introduction of practical learning methods.

For many years, the UK professional accountancy bodies have offered exemptions from some of their examinations to graduates who have completed modules in certain topics. For the typical accounting graduate, this may allow exemption from over half the examinations of some of these bodies.

Two topics relating to mergers and performance and value are not shown and account for a further five skills. The remaining 12 skills were related to isolated topics, which individual universities emphasised but were not stressed by the QAA.