Going concern audit opinion: Analysis of financial performance, corporate governance and company size

Abstract

This study aims to prove the effect of proxied financial performance with profitability, liquidity, and solvency and corporate governance proxied by the audit committee, institutional ownership, management ownership, and independent board of commissioners on going concern audit opinions. In addition, this study also proves whether company size can moderate the effect of financial performance and good corporate governance on going concern audit opinions. The sample in this study was 172 companies selected using the purposive sampling method from companies sanctioned by the Indonesia Stock Exchange from 2017 to 2021. The results showed that the variables of liquidity, audit committee, and institutional ownership negatively affect the going concern audit opinion. The variables of profitability, solvency, management ownership, and independent board of commissioners have no effect on the going concern opinion. In addition, the size of the company can moderate the influence of the audit committee, institutional ownership, and independent board of commissioners on going concern audit opinions.