Validity of a Subject-Specific Knowledge Test to Select Graduate Students in Business Administration

In order to optimize the student selection processes and maximize the number of graduates, performance tests are increasingly used by higher education institutions since the validity of the traditional selection criterion undergraduate grade point average is shrinking. While the validity of cognitive ability tests has been investigated in some studies, no investigation on the validity of a subject-specific knowledge test can be found so far. Based on data of a subject-specific knowledge test for master programs in business administration the prognostic and incremental validity of the test score is examined (N=240). The results show weak validities of the test scores, which, in conjunction with the comparatively high efforts of this type for the institutions, argue for the use of the more valid cognitive ability tests.