The purpose of this study was to provide insight into the interplay between student perceptions of competence-based assessment and student self-efficacy, and how this influences student learning outcomes. Results reveal that student perceptions of the form authenticity aspect and the quality feedback aspect of assessment do predict student self-efficacy, confirming the role of mastery experiences and social persuasions in enhancing student self-efficacy as stated by social cognitive theory. Findings do not confirm mastery experiences as being a stronger source of self-efficacy information than social persuasions. Study results confirm the predictive role of students' self-efficacy on their competence outcomes. Mediation analysis results indicate that student's perceptions of assessment have an indirect effect on student's competence evaluation outcomes through student's self-efficacy. Study findings highlight which assessment characteristics, positively influencing students' learning, contribute to the effectiveness of competence-based education. Limitations of the study and directions for future research are indicated.
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