Determinants of Undergraduate Student Drop Out Rates in a University Business Studies Department

A model intended to explain students' decisions to withdraw from their degree courses in the Business Studies Department of a 'new' university was developed and tested. It emerged that financial hardship exerted a powerful influence on the stay/quit decision and significantly moderated the impacts on the decision to leave of: (i) academic performance, and (ii) the student's level of commitment to his/her programme. Individual self-esteem played a crucial role in encouraging or discouraging withdrawal when a person experienced low grades or substantial financial problems. The determinants of academic performance, student motivation, satisfaction and commitment were explored.

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