Do US Investors Value Foreign Component Auditors?

被引:3
作者
Chen, Bingyi [1 ]
Conaway, Jenelle K. [2 ]
机构
[1] Suffolk Univ, Boston, MA 02108 USA
[2] George Mason Univ, Fairfax, VA 22030 USA
关键词
group audit; component auditor; valuation; PCAOB; international inspection; INFORMATION-CONTENT; EMPIRICAL-ANALYSIS; QUALITY; FIRM; PROTECTION; ADOPTION; MATTER; IFRS;
D O I
10.1111/1475-679X.12412
中图分类号
F8 [财政、金融];
学科分类号
0202 ;
摘要
We examine whether investors consider foreign component auditors when assessing the value of U.S. multinational corporations (MNCs) using two sets of Public Company Accounting Oversight Board (PCAOB) international regulatory events. We find investors react negatively when the PCAOB is denied access to inspect foreign component auditors in jurisdictions where a U.S. MNC has significant operations and positively when those countries later allow inspection. For foreign component auditors that are inspected, we find investors react positively when they receive clean inspection reports and negatively when they fail to remediate quality control deficiencies. Consistent with PCAOB international oversight providing additional assurance about foreign component auditor quality, our collective results indicate investors consider foreign component auditors when valuing U.S. MNCs.
引用
收藏
页码:805 / 851
页数:47
相关论文
共 61 条
[51]  
National Association of State Boards of Accountancy (NASBA), 2021, MUT REC AGR 2021
[52]  
Offermanns M., 2011, Investor reactions to PCAOB inspection reports
[53]   The economic theory of public enforcement of law [J].
Polinsky, AM ;
Shavell, S .
JOURNAL OF ECONOMIC LITERATURE, 2000, 38 (01) :45-76
[54]  
Public Company Accounting Oversight Board (PCAOB)., 2018, PCAOB SANCT DEL MEX
[55]  
Public Company Accounting Oversight Board (PCAOB), 2016, AUD REP CERT AUD PAR
[56]  
Public Company Accounting Oversight Board (PCAOB), 2017, PCAOB Sanctions Former PricewaterhouseCoopers Brazil Partner for Audit Failures
[57]   Investor Reaction to the Prospect of Mandatory Audit Firm Rotation [J].
Reid, Lauren C. ;
Carcello, Joseph V. .
ACCOUNTING REVIEW, 2017, 92 (01) :183-211
[58]   Real Effects of PCAOB International Inspections [J].
Shroff, Nemit .
ACCOUNTING REVIEW, 2020, 95 (05) :399-433
[59]   Multinational Group Audits: Problems Faced in Practice and Opportunities for Research [J].
Sunderland, Dan ;
Trompeter, Gregory M. .
AUDITING-A JOURNAL OF PRACTICE & THEORY, 2017, 36 (03) :159-183
[60]  
Vanstraelen G., 2019, INVOLVEMENT OF COMPO