While balance sheets and profitability have been hit

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Unformatted text preview: gers and acquisitions continue to be predominantly agreed rather than hostile and there have yet to emerge the headline cases which would mark a major departure from this established pattern (in contrast to Germany). As Yafeh’s paper suggests, changes so far have been slow. (v) What Are the Impediments to Change? The modest speed of systemic change illustrated so far is also reflected in the fact that quantitative changes in the corporate sector have been kept to a minimum. While balance sheets and profitability have been hit, OECD data (1999) show that physical restructuring has been fairly modest. Fewer firms have taken measures to reduce their labour force than in the 1975 recession following the first oil crisis. The proportion reporting their staffing levels as excessive is no higher than it was in that recession. It is much harder to judge the extent to which capital-stock and balance-sheet adjustments are taking place, but they also seem modest. The rate of suspension of dealings with banks (the usu...
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This note was uploaded on 02/03/2014 for the course ECON 204 taught by Professor Devero during the Summer '13 term at American University of Sharjah.

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