The Effect of a Homework Grade Cap in an Introductory Finance Class
19 Pages Posted: 29 Aug 2015
Date Written: August 24, 2015
We use data collected from various sections of principles of finance classes at a private university to examine the effect of utilizing a homework grade cap policy. Our results indicate that the homework grade cap policy increased the homework scores and that an increase in homework scores improved performance of the students on exams. An increase in homework scores triggered by the cap policy resulted in an increase of overall exam performance by about 0.4 percent. The results are robust to the inclusion of demographic variables and other factors likely to affect exam outcomes.
Keywords: Homework grade cap policy, Exam scores, Finance, Pedagogy
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