According to Clinard and Yeager (1980), what trend is observed among large companies as their financial performance declines?

Clinard and Yeager (1980) observed that as large companies experience a decline in financial performance, there is often an increased willingness to commit illegal acts. This trend reflects a pressure on businesses to maintain profitability, particularly in challenging economic conditions. When companies face financial struggles, they may resort to unethical behaviors, including regulatory violations and corporate crime, as a means to cut costs or enhance profits.

This inclination to engage in illegal acts can be driven by several factors, including the urgency to protect shareholders, maintain competitive advantage, or simply survive in a difficult market. Such behaviors might include fraud, environmental violations, and other forms of corporate misconduct, as firms may prioritize short-term gains over long-term ethical considerations.

The context of the other options helps clarify why they do not align with Clinard and Yeager's findings. Options suggesting increased compliance with laws or a decrease in law violations contradict the reality that financial strain often leads to riskier and more illegal decision-making. Moreover, growth in ethical business practices is unlikely to emerge during downturns as firms typically act out of concern for their financial state rather than upholding ethical standards.