scholarly journals GOING CONCERN COMPANY AND ITS RELATION TO SUSTAINABILITY REPORT DISCLOSURE: EVIDENCE FROM SOEs IN INDONESIA

2019 ◽  
Vol 3 (01) ◽  
pp. 12
Author(s):  
Saktiana Rizki Endiramurti ◽  
Achmad Budiman Rosadi ◽  
Agung Nur Probohudono
Keyword(s):  
Regression Analysis ◽  
Panel Data ◽  
Sustainability Reporting ◽  
Firm Characteristics ◽  
Statistical Tool ◽  
Audit Opinion ◽  
Going Concern ◽  
Going Concern Opinion ◽  
The Relationship ◽  
Sustainability Report

This study refers to the issue that is happening in Indonesian State-Owned Enterprises (SOEs), especially in the case of going concern. The purpose is to provide empirical evidence about the relationship between going concern companies and corporate characteristics on the disclosure of sustainability report. The sample used is a non-financial SOEs company in Indonesia, consisting of 54 companies during the period 2014-2016. This study employs regression analysis of panel data with statistical tool Eviews version 9.0. The results support three out of four research hypotheses, in which going concern audit opinion and firm characteristics assessed through firm size and age had significant influence on sustainability report disclosure. This indicates that the larger and longer the company stands, the company will present the sustainability reporting more fully. The more complete presentation of sustainability reporting becomes one of the important factors for the auditor in determining going concern opinion in its report.

scholarly journals The Influence of Previous Audit Opinion, Audit Tenure and Liquidity toward Going Concern Opinion in Manufacturing Companies for the Period of 2015-2017

2019 ◽  
Vol 3 (1) ◽  
pp. 1
Author(s):  
Cindy Saputra Kuswara ◽  
Ery Yanto
Keyword(s):  
Logistic Regression ◽  
Regression Analysis ◽  
Logistic Regression Analysis ◽  
Significant Influence ◽  
Manufacturing Companies ◽  
Analysis Method ◽  
Audit Opinion ◽  
Going Concern ◽  
Going Concern Opinion ◽  
The Relationship

Going Concern Opinion issued by auditor when there is doubt of a company’s ability to continue as going concern. This research have the objective to determine the relationship between Previous Audit Opinion, Audit Tenure and Liquidity with Going Concern Opinion in manufacturing companies listed in IDX form years 2015 until 2017. The population of this research is 156 with total of sample are 37 manufacturing companies. The research of data using descriptive statistic and logistic regression analysis method. The result shows that Previous Audit Opinion and Liquidity have significant influence toward Going Concern Opinion and Audit Tenure does not have significant influence toward Going Concern Opinion.

scholarly journals Pengaruh Rasio Profitabilitas, Rasio Likuiditas, Pertumbuhan Perusahaan Terhadap Opini Audit Going Concern

2021 ◽  
Vol 13 (2) ◽  
pp. 283-299
Author(s):  
Kimberli Kimberli ◽  
Budi Kurniawan
Keyword(s):  
Stock Exchange ◽  
Secondary Data ◽  
Financial Statements ◽  
Audit Opinion ◽  
Going Concern ◽  
Analysis Technique ◽  
Going Concern Opinion ◽  
Company Growth ◽  
The Relationship ◽  
Profitability Ratios

Abstract The problems that will be discussed in this journal are regarding the relationship between Profitability Ratios, Liquidity Ratios and Company Growth on Audit Delay. The research method used in this study uses secondary data. The population in this study is all Real Estate companies and the Property sub-sector registered on the BEI which are listed on the Indonesia Stock Exchange in 2017, 2018, 2019 and 2020. The sampling method in this study is purposive sampling. The criteria for companies that are sampled are companies that publish audited financial statements for four consecutive years and use the rupiah currency, so that the total number of samples in this study is 165 data. The independent variables in this study are Profitability Ratios, Liquidity Ratios and Company Growth. The dependent variable in this study is audit delay. The data analysis technique used is the Logistics Regression Test with the use of Software Eviews 10. The results of the analysis show that profitability has no significant effect on going concern audit opinion. Meanwhile, company growth and liquidity have no effect on going concern audit opinion. Keywords: Going Concern Opinion, Profitability, Liquidity, and Company Growth

scholarly journals Does a Manager Respond to a Going-Concern Audit Opinion with an Asymmetry in Gain and Loss?

2021 ◽  
Vol 13 (8) ◽  
pp. 4425
Author(s):  
Taewoo Kim
Keyword(s):  
Time Series ◽  
Accounting Conservatism ◽  
Timely Manner ◽  
Audit Opinion ◽  
Going Concern ◽  
Asymmetric Timeliness ◽  
Gain And Loss ◽  
Audit Opinions ◽  
The Relationship

In this paper, I investigate the relationship between previous going-concern audit opinions and subsequent asymmetric timeliness in accounting. Using the time-series and price-based models and conservatism proxy, I find that firms with going-concern audit opinions subsequently report losses in a more timely manner than firms that did not receive going-concern audit opinions. Furthermore, I also find that firms exiting going-concern audit opinions are more likely to report losses rather than gains in a timely manner, compared to firms non-exiting from going-concern opinions. This study extends the prior research by exploring the association between going-concern opinions and accounting conservatism from the perspective of client firms—that is, how firms behave strategically and conservatively to bypass going-concern opinions, once the firms had received previous going-concern opinions.

scholarly journals Idiosyncratic Risk and Firm Characteristics on Islamic Stocks of Four Asean Countries 2005–2017

2021 ◽  
Vol 21 (3) ◽  
pp. 1226-1238
Author(s):  
Putri Utami ◽  
Muhammad Budi Prasetyo
Keyword(s):  
Panel Data ◽  
Global Financial Crisis ◽  
The United States ◽  
Idiosyncratic Risk ◽  
Idiosyncratic Volatility ◽  
Firm Characteristics ◽  
Panel Data Regression ◽  
Data Regression ◽  
Asean Countries ◽  
The Relationship

This research investigates idiosyncratic volatility in the Islamic stock of four ASEAN countries, namely Indonesia, Malaysia, Singapore, and Thailand for 2005–2017. The volatility will be analyzed based on the idiosyncratic volatility levels of each country. Furthermore, firm characteristics will be used to determine their relationship to the idiosyncratic volatility movement. This study used the Fama-French Three-Factor model for obtaining the realized value of idiosyncratic volatility. Furthermore, a panel data regression is used to estimate the relationship between firm characteristics and idiosyncratic volatility. The results of this research suggest that mean value of idiosyncratic risk in the Islamic stock of ASEAN countries is below the non-Islamic stock in the United States but above non-Islamic stock in Hong Kong. Meanwhile, after the global financial crisis of 2008, the relationship between return and idiosyncratic risk of Islamic stock changed in all four countries. Panel data regression of firm characteristics shows that firm size is significantly negative in all four countries, while share turnover is insignificant to idiosyncratic volatility.

scholarly journals PENGARUH PENERAPAN GOOD CORPORATE GOVERNANCE, OPINION SHOPPING, KUALITAS AUDIT, DAN AUDIT CLIENT TENURE TERHADAP PENERIMAAN OPINI AUDIT GOING CONCERN AUDITING

2019 ◽  
Vol 2 (2) ◽  
Author(s):  
Panggah Wira Angkasa ◽  
Dewi Indriasih ◽  
Baihaqi Fanani
Keyword(s):  
Logistic Regression ◽  
Research Result ◽  
Institutional Ownership ◽  
Audit Opinion ◽  
Quality Audit ◽  
Going Concern ◽  
Opinion Shopping ◽  
Going Concern Opinion ◽  
Infrastructure Services ◽  
The Impact

The Impact of Good Governance, Opinion Shopping, Quality Audit and Audit Client Tenure Application towards Going Concern Opinion Audit Acceptance (Empirical Studies on Infrastructure Services Company, Utility, and Transportation which Registered at Indonesian Stock Exchange (ISE) during 2013 – 2017 Period). Essay. Tegal: Economic & Business Faculty, Pancasakti University Tegal. 2018. The aim of this research is to finding out the impact of institutional ownership, independent commissioner, committee audit, opinion shopping, quality audit, audit client tenure towards going concern’s opinion audit on infrastructure services company, utility, and transportation which registered at ISE during 2013 – 2017 period. The population in this research are infrastructure services company, utility, and transportation which registered at ISE during 2013 – 2017 period and the sample determination by using purposive sampling method, so within the result obtained 15 company’s samples. The data analysis method used is logistic regression analysis. Based on logistic regression analytic, the research result concluded that institutional ownership (0,109), audit committee (0,429), opinion shopping (0,607), and quality audit (0,998) are not affecting the going concern opinion audit. Meanwhile, the independent commissioner (0,006), and audit client tenure (0,004) are affecting the going concern opinion audit. Keywords: going concern, opinion audit, institutional ownership, independent commissioner, committee audit, opinion shopping, quality audit, audit client tenure

The analysis of influencing factors on the going concern audit opinion – a study in manufacturing firms in Indonesia

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Thomas Averio
Keyword(s):  
Audit Quality ◽  
Stock Exchange ◽  
Secondary Data ◽  
Sampling Technique ◽  
Manufacturing Firms ◽  
Annual Reports ◽  
Content Type ◽  
Audit Opinion ◽  
Going Concern ◽  
Going Concern Opinion

PurposeIt is argued that the going concern opinion is issued if auditors have a doubt about financial condition of a company. Provision of the going concern audit opinion may worsen the company in terms of gaining public trust and may even indicate bankruptcy. This study aims to determine the factors that affect the auditor's going concern opinion.Design/methodology/approachThis research used secondary data obtained from annual reports and independent audit reports published by the Indonesia Stock Exchange. The population of this research included manufacturing firms registered in the Indonesia Stock Exchange from 2015 to 2019. The sample after the purposive sampling technique being applied consisted of 33 companies. The data were analyzed using logistic regression performed in the statistical analysis software, SPSS 24.0.FindingsThe results indicated that leverage positively affected the going concern audit opinion, then the audit quality, profitability and liquidity negatively affected the going concern audit opinion, whereas firm size and audit lag did not affect the going concern audit opinion.Originality/valueThis study is in contrast to several existing studies on the determinants of the auditor's going concern opinion and provides knowledge on developing more factors affecting the auditor's going concern opinion.

The Auditor's Going-Concern Opinion as a Communication of Risk

2011 ◽  
Vol 30 (2) ◽  
pp. 77-102 ◽  
Author(s):  
Allen D. Blay ◽  
Marshall A. Geiger ◽  
David S. North
Keyword(s):  
Financial Distress ◽  
Balance Sheet ◽  
Control Sample ◽  
Data Availability ◽  
Market Valuation ◽  
Audit Opinion ◽  
Going Concern ◽  
Income Statement ◽  
Going Concern Opinion ◽  
Distressed Firms

SUMMARY In this study, we examine the proposition that the auditor's going-concern modified opinion is a valuable risk communication to the equity market that results in a shift of the market's perception of financially distressed firms. Specifically, our analyses reveal that the market valuation is significantly altered from a focus on both the income statement and balance sheet to a balance sheet-only focus in the year a company receives a first-time going-concern modified opinion. These results hold even after controlling for several common measures of financial distress and when examining a larger control sample of distressed firms. We also document that the market devalues a company's inventory and places increased weight on cash, receivables, and long-term assets and liabilities as a result of the auditor's modification. This indicates that the going-concern modification provides incremental information specifically related to abandonment or adaptation risk. Our results provide evidence that the market interprets the going-concern modified audit opinion as an important communication of risk that results in a substantial shift in the structure of the market valuation for distressed firms. Data Availability: All data are available from public sources. JEL Classifications: M41.

Audit firm characteristics and Type II errors in the going concern opinion

2002 ◽  
Vol 9 (1) ◽  
pp. 39-69 ◽  
Author(s):  
Kimberly A. Dunn ◽  
Christine E. L. Tan ◽  
Elizabeth K. Venuti
Keyword(s):  
Type Ii ◽  
Firm Characteristics ◽  
Audit Firm ◽  
Going Concern ◽  
Going Concern Opinion ◽  
Type Ii Errors

Investor Dissatisfaction toward Auditors

2002 ◽  
Vol 17 (2) ◽  
pp. 111-136 ◽  
Author(s):  
Barbara J. Sainty ◽  
Gary K. Taylor ◽  
David D. Williams
Keyword(s):  
Audit Opinion ◽  
Subsequent Change ◽  
Going Concern ◽  
Going Concern Opinion ◽  
High Level ◽  
Selection Of

Shareholders, as owners of the firm, often are sought to ratify management's selection of an auditor through a formal vote during the annual shareholders' meeting. This vote represents the primary vehicle for investor communication concerning auditor-related issues and, thus, can be used as an indicator of investor dissatisfaction with the auditor. This study proposes to measure shareholders' dissatisfaction with the auditor through the shareholders' auditor ratification vote. We identify attributes associated with high levels of investor dissatisfaction and then determine if a high level of investor dissatisfaction is associated with a subsequent change in a firm's auditor. We determined that investor dissatisfaction is associated with a firm having engaged a less credible auditor and the issuance of a going concern audit opinion. In addition, we find that investors react strongly to the unexpected issuance of a going concern opinion. Finally, we discovered that managers are sensitive to shareholder dissatisfaction signals by noting a higher occurrence of auditor changes for firms with high investor dissatisfaction.

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