We analyse interactions of simultaneous shifts in comprehensive balance sheet items annually and identify common (latent) factors, which are consistent across years. Five factors are interpreted to reflect five major decisions in businesses: Financial Flexibility, Short-term Credit, Long-term...

The available corporate finance decision identification models suffer from bounded rationality as they are static. Adopting factor analysis and using balance sheet information (accounts) over time, these decisions can be found using patterns in the data. The study identified three latent...