The Educational Value of Simulation as a Teaching Strategy in a Finance Course

Finance education relies on quantitative analyses and exercises. Lack of quantitative skills undermines student motivation. Interactive teaching methods including case-based learning, problem-based learning, and simulations have been proposed as means to improve student engagement and enhance learning. This study describes an application of a sequence of stock market simulation exercises in a finance investment course. The empirical analysis applies a model of the educational value of this pedagogical strategy to evaluate its impact on cognitive, behavioural, and affective learning dimensions. The results demonstrate that, in the cognitive category, student exam scores on the topics covered by the simulation were significantly higher compared to a control section that did not use the simulation. In the behavioural category that concerns student skills and the affective category that focuses on student satisfaction, survey responses demonstrate a positive impact of the use of simulation on skill-building and satisfaction with the course.