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The purpose of this paper is to examine whether marketing alliances create value for shareholders, and whether the results are robust across different business cycles.

Using standard event study methodology, abnormal returns (AR) were computed for 402 firms which formed marketing alliances in a 12‐month period covering three business time periods, namely bull, bear and post 9/11 periods. ANOVA and regression analyses were performed on cumulative abnormal returns (CAR).

Significant and positive AR were found on announcement day for firms forming marketing alliances. When the sample is segmented by market capitalization, small cap firms were found to stand to benefit the most, particularly when partnering with a large firm. During the bear market period, marketing alliances tend to benefit small cap firms and firms with low profitability, whereas during the bull market period, marketing alliances benefit firms with low asset utilization.

Results are limited by the accuracy of the models used to measure AR.

The results seem to suggest that smaller partners tend to benefit more from marketing alliance, and the effect changes with business cycle.

The paper analyses how the benefits of forming a marketing alliance are shared between partnering firms and how the different phases of business cycle influence the distribution of benefits.

The purpose of this paper is to examine whether the choice of underwriters, venture capital (VC) support, industry and their interactions have any impact on the long‐term performance of initial public offerings (IPOs).

Using standard event study methodology, 12 months of abnormal monthly returns for 1,772 IPOs are obtained. ANOVA and regression analyses are performed on both abnormal returns (ARs) and cumulative ARs to investigate the effect of underwriter choice, VC support and industry and their interactions on the long‐term performance of IPOs.

Under a multi‐factor framework, only significant underwriter and VC effects are found. Short‐term price momentum and long‐term price reversal pattern is most pronounced for IPOs that are underwritten by leading investment banks and backed by venture capitalists. The beginning of price reversal coincides with the expiration of IPO lockup period. Although by the end of the first year, IPOs on average underperform the market, investors can earn above market returns by investing in IPOs that are underwritten by leading investment banks and backed by venture capitalists, and divest before the expiration of the lockup period.

The results are limited by the accuracy of the models used in measuring ARs.

The results seem to suggest that a profitable investment strategy may be implemented with regard to IPOs.

The paper analyzes the various effects and their interactions on the long‐term performance of IPOs.

The purpose of this paper is to examine whether the choice of accounting treatment of transition obligation under SFAS 106 affects the value of firms, and also whether the quality of earnings is improved after the implementation of SFAS 106.

Different regression models were employed on a sample of 50 immediate recognition firms and 50 matched prospective recognition firms. Chow test is also used to investigate the quality of earnings before and after the implementation of SFAS 106.

In spite of the significant difference in impact on earnings from the choice of treatment of transition obligation, the accounting choice has no significant impact on the total value relevance of earnings and book value. When immediate recognition method is applied, investors ignore the one‐time charge of transition obligation, and rely more on book value in the valuation of a firm. However, when prospective recognition method is applied, both earnings and book value are value‐relevant in the adoption year and also in the subsequent year. In addition, the paper finds that the implementation of SFAS 106 improves the value relevance of earnings.

Results are limited by the accuracy of the models used to measure value relevance of earnings and book value of equity.

Results may have implications for managers' choice of accounting treatment, and the evidence seems to support accrual basis over cash basis on earnings measurement.

The paper uses the value relevance approach to analyze the impact of SFAS 106 on the quality of earnings and book value of equity.