The effect of PCAOB inspections on corporate innovation: Evidence from deficiencies about the valuation of intangibles

• Main Author: KIM, Jungbae
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2024
• Subjects: PCAOB; Innovation; Intangibles; Impairments; M&A; R&D; Accounting; Corporate Finance; Technology and Innovation
• Online Access: https://ink.library.smu.edu.sg/soa_research/1997; https://ink.library.smu.edu.sg/context/soa_research/article/3024/viewcontent/SSRN_Version.pdf
• Institution: Singapore Management University

I examine the economic consequences on corporate innovation when PCAOB inspections cite auditors for insufficient procedures in auditing the valuation of intangibles. I find that the clients of deficient auditors recognize larger and timelier impairments of intangibles, suggesting that affected audi...