Active Blending of Teaching and Assessment to Improve Learning Outcomes: The Case of Interdisciplinary Financial Statement Analysis

Abstract

We develop and test an innovative approach to teaching financial statement analysis (FSA) and assessing student learning outcomes based on making complex stock investment decisions compared to professional analysts. We train students to apply FSA and emphasize interdisciplinary factors and high integrative complexity. Our innovative FSA teaching approach, which we apply in an MBA financial reporting course, involves the instructor lecturing on FSA as a tool for integrative and complex decision making, students researching and applying FSA to public companies, and presenting the rationale for individual and group stock investment decisions. The instructor gives high-quality and timely feedback on the students’ application of FSA with a focus on investment judgments involving critical thinking, problem-solving, and teamwork skills. Our detailed efficacy analysis shows that our FSA teaching approach is effective. Students who perceive a public company to have credible management, effective competitive strategy, and an acceptable level of financial flexibility make comparable individual and group stock investment decisions as professional analysts.

Citation

Ampofo, A.A., Barkhi, R. and Nketia, J. (2023), "Active Blending of Teaching and Assessment to Improve Learning Outcomes: The Case of Interdisciplinary Financial Statement Analysis", Calderon, T.G. (Ed.) Advances in Accounting Education: Teaching and Curriculum Innovations (Advances in Accounting Education, Vol. 27), Emerald Publishing Limited, Leeds, pp. 59-80. https://doi.org/10.1108/S1085-462220230000027003