This paper models equilibrium in a financial market with multiple tax clienteles and multiple assets. When investors face taxation on their returns, arbitrage by a marginal clientele equalizes after-tax returns for different assets, leading to differences in pre-tax returns known as implicit...

We investigate firms' financial reporting policies with respect to business combinations, particularly the choice between the purchase and pooling-of-interests methods. To control for potentially confounding effects related to the method of acquisition financing, we focus on a sample of...