The Lagged Effects of Decision Variables on Financial Performance Measures Used In Two Business Simulation

Abstract

An interesting research question is whether advertising levels, research and development outlays, and plant or asset expansions made in one period in simulated environments will affect outcomes in the next period. Rates of return on sales, assets, and equity are commonly used in both actual and simulated environments to measure financial performance. The lagged effects of decision variables may vary between actual and simulated environments, depending on the specific measures chosen.