ChatGPT vs. Students: A Comparative Analysis of Performance in Corporate Finance Exams

This study assesses the performance of ChatGPT in comparison with that of undergraduate students in 60 multiple-choice questions (MCQs) of Corporate Finance exams that sought to measure students’ abilities to solve different types of questions (descriptive and numerical) and of varying difficulty levels (basic and intermediate). Our results indicate that overall, the students performed significantly better in all question categories except ChatGPT, outperforming the students in descriptive questions. These results imply that while AI tools offer great potential in the teaching and learning domain, we must consider their limitations, especially in the application of numerical skills and the ability to develop practical solutions. Similar to other areas, AI is becoming inevitable in education, particularly in Finance, but it should be used cautiously as a supplementary tool, not completely replacing human intelligence.