Enhancing conceptual understanding of corporate finance through simulated data: a teaching and learning approach

This paper proposes and details a pedagogical framework that highlights the integration of simulated financial data to improve conceptual understanding and decision-making skills of Corporate Finance education. Traditional lecture-based teaching often struggles to contextualize abstract financial co...

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Bibliographic Details
Main Authors: Zakaria, Shahsuzan, Abdul Aziz, Nor Farradila, Mohd Rashid, Siti Norbaya, Mohd Ruslan, Rafiatul Adlin, Kamarudin, Mohd Faizal
Format: Article
Language:en
Published: GADING Journal for the Social Sciences 2025
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Online Access:https://ir.uitm.edu.my/id/eprint/127296/1/127296.pdf
https://ir.uitm.edu.my/id/eprint/127296/
https://gadingssuitm.com/index.php/gadingss/article/view/646/511
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Summary:This paper proposes and details a pedagogical framework that highlights the integration of simulated financial data to improve conceptual understanding and decision-making skills of Corporate Finance education. Traditional lecture-based teaching often struggles to contextualize abstract financial concepts such as Net Present Value (NPV), Internal Rate of Return (IRR), capital budgeting, capital structure, and dividend policy. Through a structured simulation framework, this study presents a novel method to bridge theoretical knowledge with practical financial scenarios. A sample capital budgeting simulation is presented as a teaching tool for implementation by educators. The paper concludes with a discussion of the implications for curriculum design, student engagement, and future research opportunities in finance education.