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This paper examines the impact of technological alliance announcements in a nonfavorable environment, using event study methodology that includes robust tests to allow heteroskedasticity across firms and over time. The study is based on Spanish data, and focuses on the fact that Spanish market conditions do not favor firms that are deciding whether to enter a technological alliance. The paper is extended to analyze different features of alliances. Results suggest no stock market reaction on the day of the announcement, and a negative reaction on the days that follow. Our results also show that the stock market exacts no penalty on joint venture alliances, alliances involving public entities, alliances between Spanish firms, or alliances between competitors. The common feature revealed in these subgroups is the pursuit of security, a phenomenon that is consistent with the study environment.

CONSTRUCTORS of metal aeroplanes since 1910, Messrs. Breguet have recently turned out a new machine which represents a complete breakaway from accepted practice. After acquiring a thorough experience of light alloy construction in the past ten years with their world‐known Breguet 19, they have been led to reconsider the problem of design from the very beginning and to introduce an entirely new conception.

Like the other contributors to this session, I have been asked to deal with the subject under a number of sub‐headings. But before I do so, I should like to make a few general remarks.

Likethe other contributors to this session, I have been asked to deal with the subject under a number of sub‐headings. But before I do so, I should like to make a few general remarks.

THE term interference in its aerodynamic sense is generally associated with an effect that spoils the performance of an aeroplane mainly by increasing its drag at a given lift. While there are good grounds for this outlook, it is of some importance to remember that it by no means represents the whole truth. Interference effects are not confined solely to changes of drag or lift: they often play a material part in many other properties of a complete aeroplane such as its stability, its spinning properties and in the phenomenon known as buffeting. Further, it is not correct to assume that interference always works against the designer; it may quite well assist him in certain cases, and the better he understands its causes the more chance he has of designing combinations having favourable interference.

THE Wolseley A.R.9 engine is a nine‐cylinder air‐cooled radial rated at 185 h.p.

To examine the stock price reactions to the announcements of corporate real estate disposals by listed non‐property companies in Malaysia and whether disposals under different economic conditions lead to different price reactions.

This research applies the event study approach.

It is found that the cumulative abnormal returns associated with the property disposals differ significantly in different economic conditions. Price reaction for property disposals before the Asian financial crisis is consistent with the normal investor expectations of increasing shareholder value. However, property disposals during and after the crisis have negative wealth effects.

The research is limited in that it has considered only the Asia financial crisis. Further research might explore the impact of other forms of economic conditions on wealth effects of corporate real estate disposals.

The research clearly identified the need to consider economic condition as a factor affecting wealth effects of property disposals. The findings of this study are useful to decision makers of multinational companies which have significant corporate real estate investments in China, India and developing countries.

The paper argues that the wealth effect of corporate real estate disposals is affected by economic condition.

This paper reviews the theoretical and empirical contributions to the proxy contest literature. The theoretical work, to date, suggests that (1) the use of the proxy contest as a method of taking over a corporation depends on its cost relative to the tender offer; (2) the security voting structure and the debt/equity ratio influence the outcome of the proxy contest; and, (3) the value of a proxy contest can be estimated using the principles of option pricing theory. A review of empirical research indicates that (1) firms which are inefficiently managed are more likely to become the target of a proxy fight; (2) wealth gains accrue to shareholders of contested firms during the contest period; and, (3) incumbent management is more likely to succeed in a proxy fight but not necessarily ‘win’.

We examine the use of relative performance evaluation (RPE), asymmetry in pay for skill/luck, and compensation benchmarking for a sample of firms involved in a spinoff. The spinoff affects firm characteristics that influence the use of the identified compensation practices. We test for differences in the compensation practices for the pre- and post-spinoff firms. We find that RPE is used for post-spinoff CEOs, but not pre-spinoff CEOs. Post-spinoff CEOs are also paid asymmetrically for luck where they are rewarded for good luck but not punished for bad luck. Both pre- and post-spinoff CEOs receive similar levels of compensation benchmarking. The study provides additional evidence on factors that influence compensation practices. Our spinoff sample allows us to examine how compensation practices are affected by changes in firm characteristics while keeping other determinants of compensation constant (i.e., the board and, in many cases, the CEO). Our findings contribute to the understanding of how the identified compensation practices are used.

The purpose of this paper is to analyse the impact of spin-off announcements on the parent firm’s share prices. Also, it is studied that during which period the announcement impacts the share prices significantly thereby affecting the shareholder wealth.

A sample of 76 Indian firms has been taken which announced the spin-off of their one or more divisions during 2010–2011 to 2015–2016. The authors have used the event study methodology with an event window period of −35 to +35. Estimation window of 256 (−290, −35) days is considered in the study. S&P BSE 500 is used as a market index.

The authors found that spin-offs have a significantly positive influence on the share prices of the parent firm. The authors also found that average abnormal return (AAR) of all the 76 companies taken together have been highest on day 0 and the cumulative AAR is highest for day +1. These results are in consonance with what had been concluded by Hite and Owers (1983), Cusatis et al. (1993), Miles and Rosenfeld (1983) and Rosenfeld (1984). All these studies are based on the data derived from the USA. Outcome of this study substantiates the same results when Indian spin-offs are analysed.

This paper provides the first comprehensive analysis of the impact of Indian spin-offs on the shareholder’s wealth.