Why Finance? Evaluating the Undergraduate Business Administration Students' Interest in Finance Area

Abstract

This study aims at analyzing the interest of graduate Business Administration students in the discipline of Finance and the main factors influencing this interest. We identified in the literature, five constructs that, in theory, can affect the student’s interest in Finance: (i) personal interest in Finance, (ii) Interest in a career in the area, (iii) Theoretical and practical relevance of the area (iv) Technical knowledge about finance, (v) Interdisciplinary relevance of the area. We  added another construct, which had not been considered in previous studies, called “Students’ perspective on teaching quality”. The data collection instrument was developed based on previous works and aimed at providing information consistent with the hypothesis made. Data were collected from eight higher education institutions, public and private, in the states of Minas Gerais, Rio de Janeiro, Ceará, and Espírito Santo, comprising a sample of 290 valid observations. .A partial least squares (PLS) method of structural equation modeling (SEM) was used to analyze the data.  The Average Variance Extracted (AVE), Average Path Coefficient (APC), Average R-Squared (ARS) and Average Variance Inflation Factor (AVIF) fit indexes were tested and indicated a good overall model fit (R²=0.74). Cronbach’s alpha and reliability composite index were also calculated and reasonable values were found. All constructs showed significant values ??for the standardized coefficient (p <0.01). It is noteworthy that our the results did not allow us to reject any of the hypothesis made. For a deeper and comprehensive understanding of the subject, we suggest that future research focus on the evaluation of the teaching process in Finance and alternative approaches to increase students' interest, with greater convergence between theory and practice.