What Business Students Learn from Finance Simulations

Abstract

"The purpose of this paper is to examine and analyze two widely used simulations in Finance, Fingame and Finansim, as learning devices which supplement textbooks in managerial finance. The paper discusses the purpose of using these finance simulations, shows the decision-making skills called for, and the need to integrate short-run and long-run decisions as reflected in the participants pro-forma cash budgets, income statements and positions statements. A conceptual framework is designed which indicates the steps which have to be followed by students in reaching their ultimate objectives. Then, the advantages and shortcomings of both Fingame and Finansim as a learning device are discussed along with the need to improve these two simulations. "