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Can Grade Inflation In Prerequisite Courses Affect Student Performance In Business Finance?, Chien-Chih Peng

Kentucky Journal of Excellence in College Teaching and Learning

The purpose of this study is to determine the effect of grade inflation in prerequisite courses on student performance in business finance. Some studies indicate that performance in business finance can be affected by performance in prerequisite courses. The ordered-probit regression model is employed to analyze a sample of 229 students during the period from 2005 to 2009. The results indicate that students who earned higher grades in prerequisite mathematics and economics courses are more likely to perform better in business finance. Grade inflation generally is not a significant determinant in explaining student performance in business finance. However, students who …