I have heard from some people that it does and I heard from some people that it doesn’t.
PS I would never do this to any animal.
No, it doesn’t. What it may do is encourage the dog to start eating its own feces.
Dogs have an extremely poor grasp of cause-and-effect. The punishment must be immediate in order for the dog to understand that this action equals Bad Things. A delay of only a few seconds may make the dog think you’re punishing them for something else entirely.
Some people may train their dogs* in spite of *doing this, and then attribute their eventual success to the method but anyone who works with dogs or has trained a lot of them knows that the dog just won’t understand what you’re trying to say.
The best way to train a dog is to prevent accidents from happening. Take them out very frequently when you first get them, gradually extending the times between “outs” and eventually getting them on a schedule. (In the evenings, mine know they go out at 5, 8 and 11 PM and they wait for those times, only whining to go out if it’s an emergency.)
Watch the dog like a hawk by keeping him confined to an area where you can see him, gradually giving more freedom as you get to trust him more. If you see him start to squat, say “NO!” and immediately take him outside. Dogs naturally don’t want to eliminate in their living area-- all they need to learn is that the *whole house *is considered living area.