Graduate corporate finance: Are math skills an obstacle?

Abstract

This research examines the relationship between prerequisite algebra knowledge and graduate corporate finance course performance. Standardized math questions designed for an undergraduate introductory finance course also predict quantitative performance metrics among 128 business graduate students. Results demonstrate that prerequisite math skills, while to a lesser extent than with undergraduate finance courses, do remain an obstacle for the quantitative performance metrics of a graduate corporate finance course. However, math skills demonstrate an inverse relationship with team-based case study performance, thereby obscuring the overall impact of any math skills deficiencies. This research presents a three-question course-embedded assessment tool to support finance course assurance of learning in an AACSB context.

Keywords:

• Business pedagogy
• graduate mathematics
• MBA prerequisites
• student performance

JEL CLASSIFICATION:

• A23
• I2

Correction Statement

This article has been republished with minor changes. These changes do not impact the academic content of the article.