By emphasising low interest rates (good for indebted companies but bad for savers) and low wages (ditto) to help companies out of their mess, Japan's economy has depended too much on exports and is now worryingly vulnerable to external shocks.Politicians complain about firms' tendency to hoard cash, and urge firms to pay workers more.
And Brazil's judges enjoy broad autonomy in interpreting laws, which, like tax rules, have suffered frequent changes during the country's past 20 years of economic turmoil.Tax demands can also arise from local firms' tendency towards downright illegal behaviour.
This suggests that, rather than pushing companies to explore some new area which the government in its wisdom or folly has decided is the sector of the future, industrial policy should encourage competition instead, thus reducing firms' tendency to seek out less contested arenas.Does this work in practice?
This development is often associated with a firm's tendency to change from a make to a buy strategy.
Innovativeness reflects a firm's tendency to engage in and support new ideas, novelty, experimentation, and creative processes that may result in new products, services, or technological processes (Lumpkin and Dess 1996).
Such an outlandish claim absolves Ahold's bosses of responsibility for their acquisitions and ignores the persistent, firm-wide tendency to test the limits of acceptable accounting.Most firms that buy in bulk including such admired retailers as Wal-Mart and Tesco get discounts from suppliers if they meet sales targets.
There are also fears about law firms' increasing tendency to outsource paralegal work – one of the ways students who graduate from the LPC without a training contract gain experience and a foot in the door of the profession.
It's sure to cause controversy and spur demands to restrain the firm's imperialistic tendencies.
Chemical firms have a tendency to overbuild when prices are high and underbuild when they are low, ensuring that prices plunge and soar.
Size-earnings differential may be due to the higher rate of unionization in large firms and unions' tendency to raise wages.
In a fascinating paper published last year, Stanford law professor Bernard S. Black correlates market discounts for Russian firms with their tendency toward uncouth behavior (such as stripping assets or shafting minority shareholders).
