In a global marketplace, U.S. firms may find it easier to do business elsewhere, investing their capital in more business-friendly nations.
Chung writes that she now favors companies with large recurring revenue streams, plus strong secular growth opportunities, clean balance sheets and shareholder-friendly capital allocation policies.
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Not only do innovators of the mind create products that make us more economically efficient, when governments become too aggressive in taxing their earnings, they possess a greater ability to move their human capital to more business-friendly locales.
The Arsenal-supporting superstar of the hoops was back in the British capital recently -- which will host a preseason friendly between the Chicago Bulls and the Utah Jazz on Ocotober 6 -- where he told CNN of his affection for the city.
It has no state capital-gains or income tax, and a business-friendly and immigrant-tolerant attitude.
Give employers just a little incentive, and there is no reason they cannot tap their ample capital budgets to fashion an imaginative -- and employee-friendly -- school.
Rather, the difference reflected the more open, cosmopolitan, "Europe-friendly" feelings of people in the capital city, compared to the more traditional values of the countryside, with its nostalgia for Sweden's "separate identity".
Rather, Mr Victor and Ms Jaffe agree, western capital will probably flow to those countries with the most investor-friendly policies.
And they will do quite well for at least another decade or two, living off mainstream industries such as autos, consumer electronics, semiconductors and other capital goods as they make a transition to a more investor and consumer-friendly society.
No wonder Mr Chirac, a president condemned since the general election of 1997 to cohabit with a left-wing government, is keeping a close eye on the capital: a friendly mayor could help him stay in power.
It never works because people, investment capital and businesses are mobile: They can leave tax-unfriendly states and move to tax-friendly states.
Fortunately, recently, professors Nick Bloom, Toby Kretschmer, and John van Reenen (from Stanford, the University of Munich, and the London School of Economics) conducted an extensive study examining the effect of family-friendly practices on hard variables such as firm sales per employee and return on capital employed, using a large database of firms from the US, the UK, Germany, and France.
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Sure, London is tax-friendly in its own way, which is why hedge-funds love pitching their tents in the capital, and the current government plans to lower its corporate tax rate to 24% over the net few years.
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