Involuntary corporate finance: the dominance of history in decisions

• Published in: Applied economics Vol. 46; no. 33; pp. 4104 - 4115
• Main Author: Coleman, Les
• Format: Journal Article
• Language: English
• Published: London Routledge 01.01.2014; Taylor & Francis Ltd
• Subjects: agents' control; Censuses; Corporate finance; Data analysis; Decision analysis; Decision making; Economic models; History; Investment; Parameter estimation; Regression analysis; Studies

Lagged values of corporate finance decisions are known to be economically important, but most analyses ignore them. This article examines the influence on five key financial decisions of previous decisions using a data set that includes industry census data. It finds that lagged values explain betwe...