Enhancing Conceptual Understanding in Corporate Finance through Simulated Data:

A Teaching and Learning Approach

  • Shahsuzan Zakaria Universiti Teknologi MARA
  • Nor Farradila Abdul Aziz
  • Siti Norbaya Mohd Rashid
  • Rafiatul Adlin Mohd Ruslan
  • Mohd Faizal Kamarudin
DOI: https://doi.org/10.24191/gading.v28i2.646
Keywords: corporate finance, simulation, teaching, learning

Abstract

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.

Published
2025-10-31
Issue
Vol 28 No 2 (2025): Gading Journal for the Social Sciences
Section
Article/Paper

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