Grading on a Curve in Prerequisite Courses and Student Performance in Online Introductory Corporate Finance Classes

Abstract

This paper examines whether the practice of grading on a curve in prerequisite courses can affect student performance in online introductory corporate finance classes. The ordinary least squares regression model is employed to analyze a sample of 206 students during the period from 2008 to 2012. The results of this study show that the student’s age, major, educational experience, number of hours a student works, and performance in prerequisite courses are significant determinants of student performance. However, the results show no significant difference in student performance in the online introductory corporate finance class between students whose grades were curved and those who did not receive curved grades in prerequisite courses.