We present a signature formula for compact 4k-manifolds with corners o
f codimension two which generalizes the formula of Atiyah et al. for m
anifolds with boundary. The formula expresses the signature as a sum o
f three terms, the usual Hirzebruch term given as the integral of an L
-class, a second term consisting of the sum of the eta invariants of t
he induced signature operators on the boundary hypersurfaces with Atiy
ah-Patodi-Singer boundary condition (augmented by the natural Lagrangi
an subspace, in the corner null space, associated to the hypersurface)
and a third ''corner'' contribution which is the phase of the determi
nant of a matrix arising from the comparison of the Lagrangians from t
he different hypersurfaces meeting at the corners. To prove the formul
a, we pass to a complete metric, apply the Atiyah-Patodi-Singer formul
a for the manifold with the corners ''rounded'' and then apply the res
ults of our previous work [11] describing the limiting behaviour of th
e eta invariant under analytic surgery in terms of the b-eta invariant
s of the final manifold(s) with boundary and the eta invariant of a re
duced, one-dimensional, problem. The corner term is closely related to
the signature defect discovered by Wall [25] in his formula for nonad
ditivity of the signature. We also discuss some product formulae for t
he b-eta invariant. (C) 1997 Elsevier Science Ltd.