Dear researchers,
I have quick question, please.
While I am reading papers, I have found one use the following model:
Dep = Indep1 + Indep2 + Indep3 + Indep4 + Indep5
And as you know there is a measurement for each variable.
I have noticed that the dependent variable scaled by the previous total assets. Likewise, the indep 3 and 4 also scaled the previous total assets. However, Indep1 and Indep 5 scaled by the current total assets. So, my question why they scale the variables by the previous year, shall I scall all independent variables by the previous year or it depend on something??
Thanks in advance.
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