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In business this means that bad firms go bust and good ones grow to great size.
The result is that bad firms are not driven out of business.
By doing so, is that more or less ethical than funds which simply ignore the bad firms?
Kathy Baylis and Jeffrey M. Perloff, "Price Dispersion on the Internet: Good Firms and Bad Firms," Review of Industrial Organization, 21(3), November 2002 305-24.
Mr Kaplan and Ms Schoar found that the winners in private equity tend to keep on winning, and the bad firms stay bad if they remain in business.
The study showed that the winners in private equity tend to keep on winning and the bad firms stay bad if they remain in business.
Similar(49)
He is, in short, exactly what the bank needs right now.RBS failed not because it was a bad firm, but because it had too little capital and then bought ABN.
Either way, don't stay connected with a bad firm.
Do you suspect that you're currently working with a bad firm?
(See some reflections on bad accounting firms and our own work experience in "Law and Order: AIG"). Are these firms really expected to police dishonest bankers?
In bad times, firms are inclined to hunker down with the businesses they think they are best at, and to shed the rest.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com