THE ANALYSIS OF THE INFLUENCE OF FINANCIAL DISTRESS, DEBT DEFAULT, COMPANY SIZE, AND LEVERAGE ON GOING CONCERN OPINION

Padri Achyarsyah, - (2016) THE ANALYSIS OF THE INFLUENCE OF FINANCIAL DISTRESS, DEBT DEFAULT, COMPANY SIZE, AND LEVERAGE ON GOING CONCERN OPINION. IJABER, 14 (10). pp. 6767-6783.

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Abstract

The objective of this paper is to examine the effect of financial distress, debt default, company size, leverage, and solvability on going concern opinion. This study applies logistic regression (logic analysis) to predict going concern opinion. Logic analysis is one of the best alternatives to overcome the limitation of the multivariate data analysis (MDA) technique. This paper is an empirical work using a sample of listed Indonesian Stock Exchange. Logistic regression methode is used to conduct an hypothesis test. The population of this study encompasses all manufacturing companies in which stock is publicly traded on the Indonesian Stock Exchange throughout the years 2011-2014. The result of study depicted that financial distressed, debt default, and leverage has significant influence on the auditor going concern opinion, while the company size has no significant influence on the auditor going concern opinion quality. The going concern assumption is financial reporting presumes that an entity will generally continue largerly in its present form for an indefinite future and allows for the financial statements to be prepared using valuations other than liquidation value. The study contributes to auditing literature in the areas of auditor going concern opinion. The financial distress, debt default, and leverage always rise the contradiction to the auditor going concern opinion. Keywords: Financial Distress, Debt Default, The Company size, Leverage, Going Concern Opinion

Item Type: Article
Subjects: H Social Sciences > HB Economic Theory
Divisions: Artikel > Ekonomi
Depositing User: BPSI Unas
Date Deposited: 20 Aug 2017 05:03
Last Modified: 20 Aug 2017 05:03
URI: http://repository.unas.ac.id/id/eprint/62

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