Learning a selection problem of investment projects and capital structure through business game

While the importance of financial education has increased in recent years, a technique for deepening an understanding of finance theory is needed. In this research, we analyze learning methods for finance theory regarding investment project selection and capital structure determination using the business game technique. As a result of analysis, the participant understood theinvestment project selection method and interesting phenomena - understanding progresses regarding the method for determining the capital structure which raises capital stock value - were seen. These results show the effectiveness of the business game technique for studying finance theory.

[1]  Parshotam Dass,et al.  Improving Students’ Self-Efficacy in Strategic Management: The Relative Impact of Cases and Simulations , 2000 .

[2]  Abdul A. Rasheed,et al.  Simulation Games in Business Policy Courses: Is There Value for Students?. , 1997 .

[3]  Cristina Conati,et al.  Inferring user goals from personality and behavior in a causal model of user affect , 2003, IUI '03.

[4]  Cathy Greenblat.  Designing games and simulations , 1987 .

[5]  Takao Terano,et al.  Understanding Your Business through Home-Made Simulator Development , 1999 .

[6]  Takao Terano,et al.  The Development of the Financial Learning Tool through Business Game , 2008, KES.

[7]  Joseph Wolfe,et al.  The Effectiveness of Business Games in Strategic Management Course Work , 1997 .

[8]  Wilbur G. Lewellen,et al.  The cost of capital , 1969 .

[9]  Takao Terano,et al.  Business game development toolkit for the WWW environment , 1999, 1999 Third International Conference on Knowledge-Based Intelligent Information Engineering Systems. Proceedings (Cat. No.99TH8410).

[10]  A. J. Faria.  Business Simulation Games: Current Usage Levels—An Update , 1998 .

[11]  Lakhmi C. Jain,et al.  Knowledge-Based Intelligent Information and Engineering Systems , 2004, Lecture Notes in Computer Science.

[12]  F. Modigliani,et al.  CORPORATE INCOME TAXES AND THE COST OF CAPITAL: A CORRECTION , 1963 .

[13]  Merton H. Miller.  The Cost of Capital, Corporation Finance and the Theory of Investment , 1958 .