Comparing the effectiveness of case-based learning and problem-based learning in a core finance class

Abstract

This study examines whether case-based learning (CBL) in a core finance class improves student performance. It analyzes students’ exam scores over two semesters at a regional U.S. public university. During the first semester, CBL is used to teach two sections of an intermediate corporate finance class. During the subsequent semester, the first half of the semester is taught using CBL while the second half of the semester is taught using problem-based learning (PBL). The difference-in-differences analysis shows that the advantage of CBL over PBL approach is noticeable. Additionally, the analysis of students’ grade distributions appears to show that the CBL approach lifts students at both the top and bottom strata.

Keywords:

• Case-based learning
• problem-based learning
• finance pedagogy
• corporate finance
• cases in finance

Disclosure statement

The authors report there are no competing interests to declare.

Notes

1 The mixed-methods approach is chosen to allow a baseline comparison of students across semesters when the same instructional method is used (CBL). It also allows for a longitudinal comparison of CBL versus PBL.

2 The multiple-choice questions used for this experiment are part of the exams that include problem-solving/essay-type questions as well. The exams themselves constitute 75% of the total class grade. The instructor curves the test/class grades as needed to achieve a distribution range that is within the college/departmental practices. Historically, the actual course grades of D/F have seldom exceeded 10%.

3 We also gave students in each semester a survey asking them how they would rate their learning in the class compared to their other classes on a 1-5 Likert scale (with 1 representing learning a lot less in the class and 5 representing learning a lot more in the class). In these unreported results (available upon request from the authors), we observe an average response of 3.9 (median of 4) in the CBL semester and 3.4 (median of 3.5) in the mixed methods semester.

Additional information

Funding

This work was supported by funding from the University of Wisconsin-La Crosse College of Business Administration and the Menard Family Midwest Initiative for Economic Engagement and Research.