Business, Management and Accounting
3 years ago

Investors React to Foreign Auditor Quality, Impacting U.S. Multinational Corporations.

1 view
SSRN Electronic Journal
The Valuation Impact of PCAOB International Inspections on U.S. Multinational Corporations
Bingyi Chen, Jenelle K. Conaway

Paper Summary

Investors care about the quality of foreign auditors when evaluating U.S. multinational corporations. When the PCAOB can't inspect foreign auditors, investors react negatively. But when inspections happen and auditors do well, investors react positively. If auditors don't fix problems, investors react negatively. Overall, investors consider foreign auditors when valuing U.S. multinational corporations.

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