Determinants of Academic Performance in the Introductory Business Finance Course and a Test of the Models

Abstract

This abstract was created post-production by the JFI Editorial Board.

This study provides useful information for advisors and finance faculty members. With the increasing emphasis on student retention, it is desirable to have information which can help to predict student performance. Advisors whose advisees are planning to enroll in business finance could pay special attention to their advisees with low math SAT scores and low grades in accounting, economics, statistics, and college math courses. Also students who have attempted a large number of hours before taking the course warrant special attention. Advisors could make special efforts to offer specific advice to these students: contact the course instructor when course concepts are not clear; reduce course load when there are substantial work or other commitments; keep up in the class daily; and take advantage of the university's tutoring services. Since the class roster and students' academic records are available to the course instructor several weeks before classes begins, similar advice could be provided by the course instructor to those students at risk of performing poorly in the class. It is extremely important, however, that any such advice be provided to students with finesse and discretion. Students should not be made to feel that they have been targeted as potential failures before the class has begun.