Experiential Learning – A Case Study of the Use of Computerised Stock Market Trading Simulation in Finance Education

Abstract

Abstract:Finance is an increasingly popular choice of Higher Education programmes; however, students can find the subject challenging to learn as it involves understanding complex, abstract, mathematical models and applying academic theories learned in the classroom to the real world environment. Educational simulation is an active learning method found to be useful in enhancing students' learning experience. Although the numbers of finance students are increasing, there is limited pedagogic research attention on the use of simulations in finance education within UK higher education institutions. The study reports the findings of an on-line survey providing a snapshot of the current usage of finance-related simulations in UK universities and offers further insights into the effectiveness of introducing computerised simulation into a postgraduate finance course.The case study reports an enhancement learning experience for students that has, through concrete experience and reflective observation, increased their understanding of difficult and complex finance concepts. Unfortunately, it appears that the use of simulation and the pedagogic benefits it affords are not extensive across the UK.

Computer-based technology and student engagement: a critical review of the literature

“…Existing studies provide support for the influence of digital games on cognitive engagement, through achieving a greater understanding of course content and demonstrating higher-order thinking skills (Beckem & Watkins, 2012;Farley, 2013;Ke, Xie, & Xie, 2016;Marriott, Tan, & Marriott, 2015), particularly when compared to traditional instructional methods, such as giving lectures or assigning textbook readings (Lu, Hallinger, & Showanasai, 2014;Siddique, Ling, Roberson, Xu, & Geng, 2013;Zimmermann, 2013). For example, in a study comparing courses that offered computer simulations of business challenges (e.g, implementing a new information technology system, managing a startup company, and managing a brand of medicine in a simulated market environment) and courses that did not, students in simulation-based courses reported higher levels of actiondirected learning (i.e., connecting theory to practice in a business context) than students in traditional, non-simulation-based courses (Lu et al, 2014).…”

“…There were several key differences in the design and pedagogical use between digital games and other technologies that may explain these findings. First, digital games were designed to provide authentic learning contexts in which students could practice skills and apply learning (Beckem & Watkins, 2012;Farley, 2013;Grimley et al, 2012;Ke et al, 2016;Liu et al, 2011;Lu et al, 2014;Marriott et al, 2015;Siddique et al, 2013), which is consistent with experiential learning and adult learning theories. Experiential learning theory suggests that learning occurs through interaction with one's environment (Kolb, 2014) while adult learning theory suggests that adult learners want to be actively involved in the learning process and be able apply learning to real life situations and problems (Cercone, 2008).…”

“…interesting (Beckem & Watkins, 2012;Farley, 2013;Grimley et al, 2012;Hew et al, 2016;Liu et al, 2011;Zimmermann, 2013), feelings that are associated with a flow-like state where one is completely immersed in and engaged with the activity (Csikszentmihalyi, 1988;Weibel, Wissmath, Habegger, Steiner, & Groner, 2008). Third, digital games were closely integrated into the curriculum as required activities (Farley, 2013;Grimley et al, 2012, Ke et al, 2016Liu et al, 2011;Marriott et al, 2015;Siddique et al, 2013) as opposed to wikis, Facebook, and Twitter, which were often voluntary and used to supplement lectures (Dougherty & Andercheck, 2014Nakamaru, 2012Prestridge, 2014;Rambe, 2012). Web-conferencing software and Facebook also yielded the most positive findings, influencing four of the seven indicators of student engagement, compared to other collaborative technologies, such as blogs, wikis, and Twitter.…”

“…Also, studies are needed to isolate and compare different features within the same technology to determine which might be most effective for increasing engagement. Finally, studies on digital games (Beckem & Watkins, 2012;Grimley et al, 2012;Ke et al, 2016;Lu et al, 2014;Marriott et al, 2015;Siddique et al, 2013) and face-to-face games (Antunes et al, 2012;Auman, 2011;Coffey et al, 2011;Crocco et al, 2016;Poole et al, 2014;Scarlet & Ampolos, 2013) show similar, positive effects on student engagement, therefore, additional research is needed to determine the degree to which the delivery method (i.e.., digital versus face-to-face) accounts for positive gains in student engagement. 5.…”

“…In many studies, instructors used digital games to simulate authentic environments in which students could apply new knowledge and skills, which ultimately lead to a greater understanding of content and evidence of higher-order thinking (Beckem & Watkins, 2012;Liu et al, 2011;Lu et al, 2014;Marriott et al, 2015;Siddique et al, 2013). For example, in one study, students were required to play the role of a stock trader in a simulated trading environment and they reported that the simulation helped them engage in critical reflection, enabling them to identify their mistakes and weaknesses in their trading approaches and strategies (Marriott et al, 2015). In addition, integrating technology into regularly-scheduled classroom activities, such as lectures, may help to promote student engagement.…”