Research on the determinants and effects of various governance mechanisms typically assumes that these mechanisms operate independently. However, since a variety of mechanisms are used to achieve alignment of the interests of shareholders and managers, we propose that the level of a particular mechanism should be influenced by the levels of other mechanisms which simultaneously operate in the firm. We examine the substitution effects between alternative internal governance mechanisms for a sample of 81 bank holding companies in the postderegulation period. Specifically, we consider the relationship between monitoring by outside directors and the following mechanisms: monitoring by large outside shareholders, mutual monitoring by inside directors, and incentive effects of shareholdings by managers. Our results provide evidence consistent with the substitution hypothesis. We examine the implications of our findings for future research in the area of corporate governance.

This study provides a conceptual framework and an empirical methodology to assess the extent of value creation in acquisitions. Arguments are presented to examine why related acquisitions might not outperform unrelated acquisitions on average. New measures of value creation are developed which resolve the diflculties with measures used by earlier reseurchers. In addition, the influence of the classification scheme used to identify acquisition rypes, and the impact of the relative size of the target to the bidder, on the measurement of the extent of value creation, is examined. The empirical results indicate that value is created in both unrelated and related acquisitions. Further, the data do not appear to indicate that related acquisitions create more value than unrelated acquisitions on average. I This issue has been debated by some researchers (see. for instance. Ravenscraft and Scherer.

This article uses insights gained from the unique context of subsistence marketplaces, or the base of the pyramid, to put forth a sustainable market orientation for businesses. Using qualitative research and case studies of businesses, ingraining social good in a product-relevant sense is argued to be central and essential for businesses in subsistence contexts to be successful. This analysis is unique in taking a bottom-up in orientation and begins at the microlevel, drawing on psychological and sociological aspects of subsistence marketplaces to derive macrolevel implications.Keywords subsistence marketplaces, base of the pyramid, sustainability, poverty, literacy Understanding and alleviating poverty is crucial to the development of sustainable marketplaces. This paper focuses on subsistence marketplaces characterized by demanding, resource-constrained conditions-and yet unfolding and potentially vast opportunities. These conditions pose challenges to conventional business research and practice, which have developed predominantly through a focus on relatively resource-rich settings. This work is in keeping with the state-of-the-art in this area by examining how, rather than whether, businesses can function in subsistence marketplaces. Recent work has examined poverty from a variety of perspectives, including distributive justice (Hill, Felice, and Ainscough 2007), empowerment and exclusion (Varman and Vikas 2007), consumption and entrepreneurship in subsistence (Viswanathan, Gajendiran, and Venkatesan 2008), social marketing (Kotler, Roberto, and Leisner 2006), market orientation (Carman and Dominguez 2001), and business strategy (Prahalad 2005). This article builds on these perspectives, using the understanding of microlevel reality to derive macrolevel implications. Specifically, insights from the unique context of subsistence marketplaces (Viswanathan and Rosa 2007), or the base of the pyramid (Prahalad 2005), are used to propose a sustainable market orientation for businesses.Distinct from other orientations, such as societal marketing or corporate social responsibility (CSR), a sustainable market orientation that involves ingraining product-relevant social good in businesses is proposed, wherein customer and societal welfare concerns permeate business activities and move to the center of strategic planning. Ingraining product-relevant social good is defined as the development of a deep-seated organizational understanding of individual and community welfare as it relates to product offerings, the incorporation of the goal of enhancing such welfare into business processes, outcomes, and assessments, and the inculcation of product-relevant social good into the organizational culture. ''Ingraining'' refers to a fundamental orientation that affects the knowledge acquired by the organization, the processes, outcomes, and performance metrics of the organization and the culture of the organization. ''Good'' is not referred to in a generic sense but rather focused on how business can enhance the welfare of individ...

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INTRODUCTIONThis study provides a conceptual framework and an empirical methodology to assess the relative importance of different sources of value creation in acquisitions. The empirical results indicate that value creation in related acquisitions is associated with economic efliciencies hypothesized to arise both from economies of scale and scope and from operating efliciencies, and with market power. In unrelated acquisitions, where such eficiencies are not expected to be present, value creation occurs nevertheless, and is associated with the coinsurance effect. Finally, it is shown that financial diversiJication effects do not play a role in value creation in either type of acquisition.