Two-dimensional oblique detonation waves (ODWs) induced by finite wedges in a stoichiometric hydrogen–air mixture have been investigated numerically based on reactive Euler equations with a detailed chemical reaction model. The main zone affected by the expansion wave emanating from the turning point of a wedge is the flowfield downstream of the intersection point of the oblique shock wave (OSW) and the expansion wave. The ODW would be reduced to Chapman–Jouguet (CJ) detonation or decoupled combustion downstream. Three combustion regimes, detonation, decoupled combustion, and no ignition, were observed successively, as the wedge length decreases. It is found that the location of the intersection point is a key parameter for the detonation initiation. When the intersection point is located upstream of the ODW transition point, the expansion wave may quench ODW. Then, the critical wedge length is obtained by theoretical analysis of wave structures and the initiation criterion of ODWs for finite wedges is proposed. When the wedge length is greater than the critical wedge length, ODWs can be initiated. On the contrary, the initiation of ODWs do not occur. For wedge lengths small enough, no ignition occurs. Previously proposed criteria that use the induction length are also examined and compared with the present critical wedge length criterion in this study, and the latter is proven to achieve better results.