Knowledge sharing via common auditors: evidence from corporate R&D investment

What is it about?

This study examines the role of common auditors in corporate R&D investment decisions. It finds that peer firms make similar R&D investments when audited by the common auditor, and the common auditor effect becomes stronger when the auditor specializes more in auditing R&D, when the auditor has a long-tenured relationship with the client, and when the client exhibits greater demand for auditor-provided information.

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